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News / European boost for Lerwick harbour

A aerial view of the LPA's Rova Head development - Image" Courtesy of LPA

LERWICK Port Authority have netted more than half a million pounds in grant money to help finance its next phase of expansion to the north of Greenhead Base.

With the oil and gas energy sector booming, the port is slowly running out of space to accommodate new businesses.

Following the latest round of announcements under the European Regional Development Fund, the LPA will now be able to award a £1.3 million contract to local firm Tulloch Developments to create three separate laydown sites.

Port chief executive Sandra Laurenson said part of the land would temporarily be leased to Scottish and Southern Energy as part of their project to build a new power station, but most of the investment was speculative.

The civil engineering work to create 4.5 hectares of laydown sites is expected to be completed by May next year.

“It is very welcome news that we got an ERDF grant of £515,315, because it enables us to create the full 45,000 square metres that we had envisaged.

“That will allow us to support energy projects that are set to be using Lerwick over the next few years.

“We are really looking to the future. We haven’t got much industry land available at the moment; everything we’ve got is used up,” Laurenson said.

Meanwhile, Shetland Amenity Trust is celebrating the award of £121,880 of ERDF money in support of a project that aims to make better use of the museum’s large collection of Shetland boats.

The Shetland Boat Building Centre project already has planning permission to erect a custom-built boat shed at Staney Hill, where the boat collection will be stored and maintained.

The £304,700 project also includes the development of an accredited Shetland boat builder apprenticeship as well as a research project into the same subject.

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The trust’s deputy manager Alan Blain said: “We are trying to make sure that this important part of Shetland’s heritage is being preserved, and are putting all the necessary facilities in place.”

Highlands and Islands Enterprise meanwhile received £3.6 million towards its £9 million Strategic Delivery Body (SDB),which manages and distributes funds under the Highlands and Islands Conversions Programme 2007-13.

A total of 43 projects from across Scotland shared £20 million of European money, the government said on Monday.

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