Buncrana Senator Padraig MacLochlainn said it was very poignant that the sod was being cut on the 25th anniversary of the death of Buncrana Sinn Fein Councillor Eddie Fullerton.
Eddie Fullerton was killed at his Buncrana home on May 25, 1991 by members of the Ulster Defence Association.
The popular politician was 56 years old and had been a serving councillor since 1979.
Speaking at the cutting of the sod to mark the start of the project in Buncrana, Mr MacLochlainn said: “Eddie would have raised this back in his time, and in those days would have raised it regularly, so it is very poignant.”
Senator MacLochlainn added: “In terms of morale, Buncrana and Inishowen haven’t had too many good news stories over the years in terms of political delivery, and it is long overdue, so we are delighted to see it getting to this stage.
“The sooner it is built the better.”
Donegal County Council meanwhile on Wednesday evening organised a poignant wreath laying ceremony at the Eddie Fullerton memorial at the Stone Jug to mark the 25th anniversary of his murder.