Infrastructure and Local Government Minister Anthony Albanese and Parliamentary Secretary Gary Gray have announced the Rudd Labor Government will offer up to $2.5 million towards a new Port Pirie Cultural Precinct in South Australia.

The project will build a new library and a community internet centre and bring these new facilities together with the existing Tourism and Arts Centre, currently at the old railway platform in Port Pirie.

Mr Gray, who was in Port Pirie to make the announcement, said the Rudd Government was providing three-quarters of the funding for this $3.3 million Precinct.

The funding is from the Rudd Government's $800 million Community Infrastructure Program - the largest one-off investment in local infrastructure in Australia's history.

Mr Albanese said that through the economic stimulus package, the Rudd Government was investing in major projects like this to support local jobs and economies during the global recession.

The Port Pirie Cultural Precinct has had widespread community support and the Rudd Government's funding will help deliver this long-awaited project.

The existing Port Pirie Regional Library is in a heritage-listed building, which is need of major renovations to meet safety standards.

The Port Pirie Internet Centre, which provides computer training and internet services, is located in a rental office and has limited space to expand.

By bringing them together into a central precinct, this project will create a tourism and community hub for local residents, visitors and the Spencer Gulf region.

Mr Gray said that federal funding would contribute to the construction of various components of this Port Pirie Regional Council project.

This funding builds on $635,000 that the Rudd Government has already delivered for the refurbishment of the Port Pirie swimming pool.

Nearly 70 per cent of the stimulus package is infrastructure, with construction projects already underway.

More than 3,000 projects are being funded by the Government's Community Infrastructure Program across Australia to support jobs and benefit communities.