The Welsh assembly minister for finance, local government and communities met with the county council's leader, Meryl Gravell, on Friday at Burry Port Harbour, to inform her of the tremendous news.
Edwina Hart said: 'The development of the Millennium Coastal Park has already transformed the environment in the coastal belt between Llanelli and Burry Port. This project builds on that success and is of key importance for the future economic prosperity of Burry Port.'
Plans for the harbour include the construction of a barrage with a flap gate and pontoons which will provide mooring for 150 boats and give boat owners easy access to their vessels. The harbour has been a priority area within the park for Carmarthenshire CC and dredging work and emergency repair works have already been carried out earlier last year.
Work is set to start on the foundations of a cycle way that will link the harbour with Pembrey Country Park and form the last piece in the coastal park's 22km cycle network.
The county council remains committed to the development of Burry Port Harbour. A harbour which now, thanks to today?s announcement, can be transformed from being in serious decline and disrepair into a much needed leisure facility which will stimulate additional private sector investment, attract visitors and tourists as well as create new jobs.
The harbour at Burry Port was built between 1825 and 1832 to meet increased demand to export coal and import iron and copper ores. The harbour was designed by a noted marine engineer, Sir Joseph Banks, and built by William McKiernon, the foremost marine engineer in the area.
In 1835 the Kidwelly and Llanelli Canal was completed up to the harbour allowing all coal mined from the Gwendraeth Valley to be exported from Burry Port. Between 1866 and 1869 the canal was replaced by a railway which continued in use until 1983.
Following the closure of the railway and the Carmarthen Bay Power Station the harbour was only used by small pleasure craft and even their numbers have declined over the years.
Most of the harbour fixtures and fittings were removed during the early 1980s and the harbour has witnessed a steady decline with the consequent effect on the town and its community.