Oban seeking £20m loan to develop renewables

A £20 million plan to transform Oban into the west coast service capital for the renewable energy sector is to be lodged with the Scottish Government this week.

If the ambitious move is approved, it is predicted that 500 jobs would be created - a significant number for a town with a population of just 8,500 people.

Argyll and Bute Council leader Dick Walsh said the local authority's bid to borrow 20m under the new Tax Incremental Finance Initiative - a government scheme aimed at kick starting the economy - would be with ministers by Friday.

To win approval, the council must successfully argue the case that cash borrowed will be offset by increased rates income from new businesses the project will attract.

Councillor Walsh said discussions have already taken place between the council, renewable energy and government representatives, via the Argyll and Bute renewables Alliance, about the need for a west coast service centre.

And he claimed Oban was the ideal location, particularly with the Argyll Array wind power scheme being proposed off the coast of Tiree.

He said: "For once in our lives we have got an opportunity to bring jobs and new homes to rural areas of Argyll and Bute, but we can't do it alone, as a council. We are putting in a bid to borrow 20m."