Diggers are now on site to begin works on the new Dunfanaghy Primary Care Centre.
The new health centre is due to be available for use by HSE by autumn of next year.
The McCallion Group from Buncrana have been appointed to the construction project.
Joe McHugh TD said: “I am really pleased to see diggers on site in Dunfanaghy for the construction of the new Primary Care Centre.
“Best of luck with this project to the McCallion Group, who have just completed a great job at the Buncrana Primary Care Centre.
“This is really important news for the Dunfanaghy, Creeslough and nearby communities and for Dr Rory and Dr Paul Stewart as the construction project gets underway,” concluded McHugh.