An estimated 200 construction jobs will be generated with the building of a €10.5m multi-purpose sports arena at Waterford Institute of Technology.
The project at Carriganore on the outskirts of Waterford city is being funded by WIT.
It will comprise of four playing pitches with a conference centre capable of seating 2,000 people, as well as ancillary sports and catering facilities.
Minister Brendan Howlin turned the first sod at a ceremony today.