The first phase of the £8m Pier Head redevelopment project in Liverpool has opened to the public.

Work started on the three-stage scheme in December 2006, which will see the area in front of the city's iconic Three Graces – the Liver, Cunard and Port of Liverpool buildings – transformed into a new public space incorporating a canal. The project, which is expected to be fully completed in Spring 2009, has involved the creation of a new lawn, an area to stage events and two canal basis, as well as paving works and new sheltered areas. New trees have also been planted along Canada Boulevard, and associated plaques have been relaid.

The south and central areas in front of the Three Graces were opened on 28 October, while the northern area will follow at the end of November. A canal link, enabling narrowboats to pass across the Pier Head, will be the last phase to open, along with the area around the new ferry terminal. Warren Bradley, leader of Liverpool City Council, said: "Transforming the waterfront has been one our main priorities in regenerating Liverpool. At the heart of that is the Pier Head.

"It is an area which is known throughout the world, and is the core of our World Heritage site. It has been under-used and not fulfilling its potential. It is a place which both local people and visitors should regard as a must-see attraction." The project has been funded by the Northwest Regional Development Agency and the Government Office North West. The masterplan for the area was produced by architects EDAW, with 2020 responsible for engineering design.

Project manager for the Pier Head scheme was British Waterways, and Balfour Beatty was the contractor. The design of the new canal was provided by Arup.