The completion of the largest conference centre in the southeast has been put on hold due to a lack of finances.
The 2,000-seat conference centre is being built at the Waterford Institute of Technology campus at Carriganore on the outstirts of the city.
The project began 14 months ago and RTÉ News understands €7.3m has already been spent on planning and what is known as the shell and core phase.
The project was initially projected to cost €10m and due to be finished later this summer. There is a funding shortfall of €2.5m.
WIT says the building will not be finished as scheduled as planning for the final fit-out phase will have to take place over the coming months.
The college says that due to increased economic and financial pressures, and following consultation and agreement with the main contractors Sisk, the Sports Arena project will now be completed over a longer time frame.
Student services are to continue as normal at WIT and at the sports campus at Carriganore.
It is not yet clear if the final fit-out phase will require the college to go to tender, which will delay the project even further.