A PROJECT to build state of the art offices at a business park in region will go ahead after it secured a £1.5m investment from Europe.

Based at Consett Business Park, the new sites will house 35 small firms and create about 80 jobs to support the overall regeneration of Derwentside.

Pat Glass, MP for North West Durham welcomed the £3m scheme, which she said would enhance the business accommodation in the town.

The 2.2 acre site will developed using green construction techniques and boast broadband connectivity. Funding from the European Regional Development Fund, which is managed by the Department for Communities and Local Government, was matched by money from Durham County Council.

Communities Minister Baroness Hanham CBE, said: "This is an excellent project that is creating high quality workspaces which are a catalyst for employment, wealth creation and economic success.

"By addressing the demand for new workspaces this project will ensure new and existing businesses arent forced to leave the area. The project will successfully provide a supported managed workspace environment that will ensure new start and existing smaller businesses will continue to grow and develop, boosting the local economy, regenerating the area and creating benefits for residents in Consett."

The site is part of the successful Derwentside Business Centre complex managed by Durham County Council.

Coun Neil Foster, Cabinet Member for regeneration and economic development, said: "Consett Business Park office development will be a huge boost to the economy of the county and is the next step in ensuring that public sector-led projects continue to lead the way in encouraging the economic growth of semi-rural locations."

The European Regional Development Fund Competitiveness Programme will bring £300m into the region during 2007-13 to support innovation and enterprise. It is expected to create and safeguard 28,000 new jobs, start 3,000 new businesses and increase the regions productivity by £1.1bn per year.