Scotland’s government has granted approval to Argyll and Bute Council’s £18.9 million plans for the Lorn Arc under the Tax Incremental Finance (TIF) scheme.
The TIF scheme is expected to attract £125 million of private investment and generate hundreds of construction jobs during the project development.
Under the five year plan, the company will expand the Oban North Pier, upgrade road links to established industrial areas, renewable energy projects and create new business space at Oban airport.
Scotland 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.
“We will continue to use every lever at our disposal, within our devolved powers, to boost capital spending and through innovative financing schemes such as TIF, support jobs, apprenticeships and help the Scottish economy,” Sturgeon added.
Argyll and Bute Council leader Dick Walsh said the investment has 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,” Walsh added.
“They saw, as we do, that the key to sustainable economic growth is investment in vital infrastructure.”