STREET lighting in Sunderland is set for a major upgrade after the city council won permission to seek private money.

The Government has given the council approval to set up a private finance initiative for a five-year programme to replace thousands of lighting columns, install new ones, and replace road signs.

The Government is making extra money available for the scheme, which is expected to start in June 2002.

Council officials hope the programme will make the city's roads safer and also help in the fight against crime.

The council is the first in the region to have a private finance initiative scheme approved for street lighting.

Council leader Colin Anderson said: "Members recognise the benefits that come from a good street lighting service.

"The public consistently values street lighting which was proved in recent Mori polls.

"Our recent best value review on street care identified a need for more capital investment in our street lighting service.

"That's the background to this welcome announcement from Government that once again puts Sunderland at the forefront of new initiatives to improve the lives of the people who live here.''

Local Government Minister Hilary Armstrong said: "I'm delighted the latest group of PFI projects cover such a wide range of local services.

"Sunderland has worked hard to produce a very good case for improving their street lighting and I'm sure the project is going to have a very beneficial impact on the city.''