A multimillion-pound city and growth deal for Derry and Strabane has been described as a “jumpstart” for investment in the north west of Northern Ireland.
Meanwhile, doubt still remains around two additional growth deals in the Causeway Coast and Glens and the Mid South West.
Those behind the Mid South West growth deal said they are “shocked and disappointed” to have received news that the funding previously committed by the Government has been “paused” and is now subject to the outcome of the Spending Review.
In a statement, partners for the Mid South West deal called for the pause to be lifted, saying “significant resource” has been invested to develop a suite of projects.
UK Government and NI Executive Ministers gathered at the Guildhall in Derry to officially sign the Financial Deal for the Derry-Londonderry and Strabane City Region City Deal which will unlock in excess of £290m of investment in health, life science and digital projects.
The Government believes it will help bring about “transformational changes and benefits” to the region.
Westminster provided £50m City Deal funding and £55m via the Inclusive Future Fund, which has been match-funded by the NI Executive with contributions by Derry City and Strabane District Council and its project partners of £83m.
According to the Government, it will help create up to 6,300 new jobs by 2033 and will allow the region to attract investment, enable regeneration and boost tourism.
Over time, projects had to be condensed due to inflation, meaning buildings now combine two projects.
Therefore, a new £50m building will be home to the medical school and a personalised medicine innovation centre.
That will also lead to a new medical teaching facility and a new-build extension to the existing Clinical Translational Research Centre (C-TRIC) at Altnagelvin Area Hospital.
Other major projects include £102m for Strabane town centre regeneration, £45m for redevelopment of the riverfront, £13m for a Derry on the North Atlantic (DNA) Museum situated in Ebrington, and repurposed public realm within the Walled City costing £18m.
The Mayor of Derry City and Strabane District Council, councillor Lilian Seenoi-Barr, who hosted the event, hailed it as “a momentous day” for the Derry and Strabane region.
“Thanks to cross-party political support, private sector backing and unprecedented levels of collaboration from all the partners, we’ve succeeded in securing this significant, long-term commitment to transforming the NI economy in the sectors where we have the potential to become world leaders,” she added.
“This City Deal provides us with an opportunity to be vibrant and exciting and to provide us with so much potential for growth and prosperity.”
Secretary of State for Northern Ireland Hilary Benn said he was “proud” to sign the deal on behalf of the Government.
“It’s going to provide support to so many important initiatives which will positively impact the lives of local people, including the regeneration of the waterfront in Derry and of Strabane town centre,” he added.
The Derry Chamber of Commerce also said it would be “truly transformative” for Derry and the north west.
“The signing of this deal represents the beginning of the north west of the future taking shape,” said Chamber President Greg McCann.
“Notwithstanding last week’s confusion, 2024 has been a year of good news for our City Deal, with the funding increase which was delivered in March of this year.
“City Deals are essential tools in the delivery of regional balance and good jobs, which are two of the Minister for the Economy’s stated priorities. It is imperative that every pound of pledged funding is now delivered.”
SDLP MP Colum Eastwood sees the deal as a “jumpstart” for investment in the city.
“The SDLP has been campaigning for City Deal investment here for a decade against the odds and sometimes against the wishes of Executive ministers,” he said.
“When others couldn’t, we saw the potential of leveraging this level of investment and the long-term impact it could have on our ambition for growth, university expansion and opportunities for people across Derry and the north west.
“For too long we’ve been asked to live on hope alone, but it’s not enough. People need good jobs, better opportunities and sustained investment to achieve their ambitions.
“Today we are turning the page on a story of underinvestment in our city that has lasted for decades. And this is just the start.”
He added: “It won’t transform things overnight, but it can, and it must, be a jumpstart for investment in people, skills, good jobs and better opportunities.
“People here know what it’s like to have to fight for every penny of investment.”
Foyle MLA Gary Middleton said the deal represents an “exciting new chapter in the economic development of the area” and that the impact of the investment will be felt across the entire community.