Work has started on the regeneration of East Quay in Peel.
The scheme includes improvements from the road bridge to the footbridge, new low energy street lighting, service points for harbour users, and provision for future electric vehicle charging points.
The DOI says the work will be done in stages to minimise disruption, with sporadic road closures.
The scheme will be completed by Paul Carey & Sons, and is expected to be finished before summer next year.
East Quay will be accessed from Station Place, with all businesses open as usual.
Want to start training to become a nurse?
Appeal launched after fly-tipper filmed dumping rubbish
Prepare your pets for Bonfire Night, says Manx charity
Manx Care bringing in mobile translation machine
Steam Packet says it would get too many Freedom of Information requests
Vintage TT trophies on sale for £5,000
TT merchandise company still owes government over £100k
Manx Care's annual assessment shows £15.6m deficit