A project to build a maritime museum for Wales in Swansea has secured �2.6m of European funds.

Plans are well under way for the �28m National Waterfront Museum which will care for around 200,000 exhibits when it is opens in 2005/6.

Andrew Davies: "Significant benefits"

The announcement of the Objective One grant made by the Welsh Assembly on Wednesday takes the total secured by the project to �20m.

The Maritime Museum in Swansea closed its doors for the last month to make way for the new building.

The existing Grade II listed building, which was built as a warehouse in 1904, will be incorporated into the new glass-fronted building.

Work is expected to start early next year and take three years to complete.

The museum scheme is part of a wider �200m redevelopment of Swansea's waterfront area.

The former Maritime Museum in Cardiff

Thousands of jobs could be created as part of an "innovation village" around the city's prince of Wales Dock.

Announcing the grant, Welsh Economic Development Minister Andrew Davies said the museum was an important aspect of the area's regeneration.

He said: "The National Waterfront Museum is a key driver in the development of Swansea's Maritime Quarter as it strives to become a nationally recognised tourism and leisure destination.

"It will bring significant benefits to the local and wider economy and will play a key part in safeguarding and interpreting the industrial heritage of Wales."

The project has already secured �11m from the Heritage Lottery Fund, �2.5m from the Welsh Development Agency, �1.5m from the Wales Tourist Board and a further �4.4m from the private sector.

Swansea was chosen more than three years ago as the location for the national museum which will come under the control of the National Museums and Galleries of Wales.