The district's council will meet on Tuesday to decide on bids for the Government-backed funds, members are expected to approve the application.
The authority is set to make three applications - one for the district council area, one for the Dumfries and Galloway Westminster parliamentary constituency area and one for the Dumfriesshire, Clydesdale and Tweeddale constituency area, which would be made in conjunction with Scottish Borders Council and South Lanarkshire District Council.
If the proposed bids were successful, the money earmarked for Annan would be used to refurbish a former warehouse into a "hub of activities" including a workshop for heritage boat craft skills; a flexible café; a meeting/community space and a new footbridge, to create a new focal point for water sports and activities.
Other projects included in the proposed bids are the redvelopment of the George Hotel site in Stranraer, a new water sports hub, also in Stranraer and an outdoor activity centre in Dalbeatie. Electric buses, charging points and cycle routes have also been earmarked for construction.
If the bids receive council backing, applications have to be submitted by 6 July.
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