MORE than 10,000 jobs will be created across the Tees Valley in the next four years if the Government approves bids to its flagship enterprise fund.

The second round of the Regional Growth Fund (RGF) closed yesterday with £156mworth of applications submitted from this region.

Bidders are bracing themselves for disappointment, however, as the controversial scheme is again expected to be massively oversubscribed.

The region is competing for a share of £950m aimed at generating private sector jobs in areas which are suffering most from public sector cutbacks.

Tees Valley’s first-round bids were the most successful in the country when £26m was awarded to five projects. But 56 North-East projects were rejected by the panel, led by Deputy Prime Minister Nick Clegg.

Nissan, Cleveland Potash and Thai firm Sahaviriya Steel Industries were among the winners, sparking criticism that the Government had favoured established firms and ignored a host of worthwhile schemes.

The fund has also been under fire because it is much smaller than the billions distributed by the axed regional development agencies, including One North East and Yorkshire Forward.

Round two has encouraged small and medium-sized firms to submit combined applications, known as programme bids.

Commenting on the submissions, Stephen Catchpole, managing director at Tees Valley Unlimited, the Local Enterprise Partnership for the area, said: “I’m looking for a really substantial award from the panel in recognition that we are putting forward super bids from super companies and super programmes.

“We have received very supportive comments from the Prime Minister and (Communities Secretary) Eric Pickles in recent weeks, but that counts for nothing.

“The bids have got to be strong and competitive. I think we have got that and I’m hopeful we will be successful.”

One bid tipped to succeed is the £4.8m application to support the next phase of Digital City Business.

The scheme, based in Middlesbrough town centre, has created hundreds of jobs across the region and opened satellite offices in Barnard Castle, Stockton and Redcar.

If its RGF bid is approved, the council-backed scheme will sever financial links with the public sector and become a stand-alone company.

But if Mr Clegg rejects the bid, it would be a major blow to DCB’s plan to create 300 jobs by 2014, and 3,000 jobs by 2022.