The project is expected to be completed by 2008

The �150m project will also include a conference centre, hotels, offices, apartments and shops.

EU money totalling �46m has already been confirmed for the development, which is expected to be ready for the city's Capital of Culture year in 2008.

On Monday, construction workers moved onto the site to begin work ready for the main development.

Sir Joe Dwyer, chairman of Liverpool Vision, said: "This is a very significant day for Liverpool and Merseyside.

"The start on site represents an important milestone in realising our ambitions to develop world-class facilities in Liverpool for the benefit of the city, Merseyside and the North West.

"We set ourselves a challenging timetable with this development, but thanks to the hard work of partners over many months we can now see tangible evidence of progress on this important waterfront site."