The Works in Llanelli town centre will provide entertainment, arts, culture, employment and skills opportunities for people across the region.
The major capital scheme will involve a new-build cultural and creative centre and the renovation of two Grade II listed buildings - Zion Chapel and the neighbouring Old School.
It is anticipated that when complete, it will attract over 50,000 visitors and play a major role in community life.
Led by Carmarthenshire County Council, it is backed with £5.1million from the EU's European Regional Development Fund and £5.1million Targeted Match Funding through the Welsh Assembly Government. The remainder is coming from the county council and key partners.
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First Minister of Wales Carwyn Jones said: "The Works will play a major role in the regeneration of Llanelli and the wider South West region, bringing new employment and training opportunities. It will reflect the unique heritage of the area, providing cultural and community activities to encourage greater social interaction and attract visitors who can also benefit from a rich programme of events."
As part of the scheme a multi-purpose 500+ seated main auditorium, with a stage, orchestra pit and a flexible seating system will be constructed.
Trinity University College will occupy offices on the first floor for their enterprising 'Nexus@The Works' project which will focus on creating opportunities for students, and for interaction between artists for the private sector and the local community.
Renovating the two Grade II Listed buildings will bring both back into full community and economic use, and will include workshops, exhibition area, a café, social enterprise incubation and meeting rooms. It is adjacent to Tinopolis, a private sector cinema and a retail leisure complex, providing direct access to private sector expertise in key areas of the creative industries.
The designs have been centred on the need to safeguard the special architectural and historical interest of both buildings and to ensure their future.
(CD/GK)
