A scheme to redevelop a historic pumphouse in Llanelli, South Wales, has been handed a funding boost worth £1.8m from the Welsh Assembly Government.

Development proposals for the preservation and restoration of the Grade II-listed building form part of a wider £250m regeneration of the town's North Dock and waterfront areas. The project, which will be carried out by Bendigo 9-10, will see the pumphouse transformed into a new restaurant combined with a training academy for young Welsh chefs.

A new extension, linked to the main building via an atrium, will also be built and will include a bar, a private dining suite, an outdoor dining area, staff quarters and kitchen and training facilities. The scheme has already received £345,000 from the Welsh Assembly Government's Single Investment Fund, as well as a £135,000 grant from Cadw, the historic environment service.

Work is expected to begin at the end of the month on the revamp of the building, which dates back to 1898, and it is hoped that the revamp will be completed in spring 2010. In addition to the pumphouse scheme, the wider regeneration of the area, led by the Assembly Government in partnership with Carmarthenshire County Council, includes the creation of a new public piazza between the building and the Dock edge.