Work on the €1.3 million new Civic Centre at Triq id-Duka ta' Ediburgh in Hamrun is underway.
The centre, on a site passed on to the council by the central government in 2008, will include five stories of underground parking accommodating 160 vehicles.
The works were this morning visited by Parliamentary Secretary Chris Said.
Mayor Vincent Bonello said the council intended to install photo voltaic panels and a solar water heater through the Alternative Energy Project Scheme.
Income from the parking fees would help finance the project, for which the council also obtained €168,000 from the Malta Environment and Planning Authority through the Commuted Parking Payment Scheme.