THE west coast town of Oban has won multimillion-pound backing for a regeneration scheme which is expected to create more than 1,000 jobs and trigger massive investment from the private sector.
The plans to revamp the picturesque port include extending its North Pier, upgrading road links, attracting renewable energy projects and creating more business space at the airport.
Argyll and Bute Council will pay for the ambitious scheme using £18.9million of Tax Incremental Financing (Tif).
It allows councils to fund infrastructure by borrowing against potential business rate income from the resulting regeneration and development.
The Lorn Arc project is expected to lever-in £125million in private investment and generate hundreds of construction jobs over the next five years.
One senior councillor said the town was now on course for “tremendous growth” and that it would become the “Inverness of the west”.
And local authority leader Dick Walsh said: “This is fantastic news, both for the people of Oban and the surrounding area, as well as the people of Argyll and Bute as a whole.
“This investment has the potential to create in excess of 1,000 jobs and is going to have a hugely positive impact on the lives of the people of Oban and the surrounding areas, bringing huge private sector investment to the area.
“I would like to thank our partners in both the public and private sectors, particularly those at Scottish Futures Trust, who threw their support behind the Tif bid. They saw, as we do, that the key to sustainable economic growth is investment in vital infrastructure.”
In 2012, Aberdeen City Council’s Labour-led administration scrapped plans to apply for £92million of Tif money for the controversial City Garden Project, which would have involved a radical redevelopment of the city’s Union Terrace Gardens.
North-east oil services tycoon Sir Ian Wood had offered to contribute £50million of his own money to the scheme, but it was ultimately rejected by councillors.
Councillor Duncan MacIntyre, the local authority’s policy lead for economic development, said: “This is huge, £125million over five years. Add that to the new secondary school, and the roads projects, and Oban will be buzzing. It is a great boost to the economy and we have got to take advantage of that. The main thing is to ensure that we retain our young people.”
He added: “Oban is the capital of the west Highlands, and some people have referred to it as the Inverness of the west. This confirms it. It is a great opportunity not just for Oban but for the surrounding area.”
He added that Finance Secretary John Swinney had agreed to speak at an economic conference the council plans to host in Oban in the next few weeks.
Deputy First Minister Nicola Sturgeon said: “The Argyll and Bute Tif will allow major construction developments across the area over the next five years, which will unlock significant economic development and regeneration.”
