The sod has been officially turned on phase two of the Burtonport Regeneration Project.
The next phase of the development will see an investment of €3.3 million and will deliver a new harbour, ferry terminal building and an enterprise building.
Dorrian Construction has secured the contract for the state-of-the-art project.
The funding for this phase of the project was secured under the Rural Regeneration and Development Fund.
Speaking to Ocean FM News, Donegal TD and Minister for Agriculture, Charlie McConalogue, said the regeneration of both Burtonport Pier and Harbour will be transformative for the region.