A £17.3M college development will revolutionise learning for thousands of students across south Durham.

Work should start early next year on a three-storey replacement building at Bishop Auckland College, which has been awarded a £9,515,717 grant from the Learning and Skills Council (LSC). The college will borrow the remaining 45 per cent of the cost.

Wear Valley District Council has already given the development planning permission and people living in the area have been consulted over the design.

Lectures and lessons will continue in the present outdated 1958 building while work goes on towards the back of the site, where the new college should be ready by spring 2007.

Facilities in the first phase of the development include teaching and learning accommodation, centres for vocational excellence in childcare and adult social care, a library and learning resource centre, ICT and multimedia suites, industrial standard facilities for hairdressing, beauty therapy, holistic therapies and catering and hospitality, a restaurant and cafe, a four-court sports hall and changing rooms and a management and administration centre.

Performing arts, design, music, construction, mechanics and engineering centres are in the second phase of the development which should start in late 2007.

The building will use environmentally-friendly technological systems and renewable energy resources. A green transport plan is being developed for students and staff because car parking spaces are being reduced from 450 at present to 300.

Joanna Tait, the college's principal and chief executive, said: "We were aware that the existing college building was not meeting the changing needs of our learners.

"The old buildings have served us well and the college is a landmark in the area.

"This investment has given us a wonderful opportunity to maintain the college's reputation of being a first-class provider of further education and will enable us to develop its new status as a Centre of Vocational Excellence."

Tom Crompton, executive director, LSC County Durham, said: "The old building at Bishop Auckland College is approaching 50 years old and this new building will help it drive education forward in to the 21st Century, delivering quality learning to future generations in south Durham."

The college has 14,000 full and part-time students and 560 members of staff.