Construction of a new evacuation centre and function space at Bega Showground is scheduled to begin shortly.
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More than $15million has been provided by the Australian and NSW governments through the Bushfire Local Economic Recovery Fund for the project.
Earthworks for the new community centre building were currently being finalised ahead of anticipated construction in March.
The evacuation and community centre will be an accessible, two-level building with a commercial kitchen, amenities, and air-conditioning.
Improvements were also being made to the showground's heritage-listed pavilion including fire suppression, technical and air-conditioning upgrades.
Bega Showground land manager Phil Moffitt said they were "extremely pleased" work had started on the project.
"The upgrades will be of immense benefit to the community and prepare us in the event of future natural disasters," he added.
Bega-based Leser Build said it was "over the moon" to have won the competitive tender for the project.
Member for Eden-Monaro Kristy McBain said Bega Showground had been called into action multiple times during recent disasters as an evacuation point for our communities.
"The new community centre will be a welcome addition, providing disaster-affected locals with a safe, modern space to gather, have a shower and take refuge," she said.
"The tireless work of the volunteer steering committee on this project means the entire community will now benefit from combined building and pavilion improvements, enhancing the showground's ability to host significant events and providing space for meetings, concerts, sports and community activities."
Member for Bega Michael Holland was also "delighted" to see construction work start.
"I commend the project team for their commitment in navigating the considerable challenges they faced to meet the construction and BLERF funding deadlines," Dr Holland said.
"It is heartening to see the project moving forward with confidence now.
"When the project team contacted my office last year there was a boundary adjustment that needed assistance through the Department of Crown Lands and the Bega Valley Shire Council, as it was a source of major frustration and delay for them.
"The Bega Evacuation Centre will future-proof the Bega Valley community in times of celebration and need.
"The iconic Bega Showground has served our community since 1905 and this much-needed multimillion-dollar upgrade is a celebration of our community's rich agricultural heritage and a commitment to its future.
"This investment will transform the showground into a vibrant hub for agricultural shows, sporting events and community gatherings that will benefit everyone."