ONE of Wales' most deprived communities will today receive funding for a £10 million regeneration.

And the "outstanding" Gwent scheme has been hailed as a model for the rest of Wales. Finance minister Edwina Hart told AMs today that the Assembly would be committing £5.6 million to the Llanhilleth Regeneration Scheme, in Blaenau Gwent. This money will be matched by other agencies.

The work will be carried out in four phases: Phase A will see a new primary school and community facilities at the existing institute being extended. Phase B adds industrial units. Phase C will add a village square. l Phase D will complete infrastructure work.

The scheme had been earmarked for funding via the controversial private finance initiative (PFI), but the Assembly government will now be paying up front for the innovative scheme, which includes a new school.

The £10 million scheme will use European Objective One funds, an investment from Blaenau Gwent Council, the WDA and the Assembly's Communities First regeneration programme. Work on the four phase scheme is expected to begin in May 2002.

Mrs Hart told AMs: "The Llanhilleth scheme is an outstanding example of a truly integrated community regeneration project. It encompasses a combined institute and new school with potential use as a community lifelong learning facility and healthy living centre with other phases of the scheme covering environmental, infrastructure and industrial property development.

"It is a model I wish to see replicated throughout the deprived communities of Wales."

Local AM Peter Law and Blaenau Gwent Councillor Brian Scully welcomed the announcement.

Councillor Scully, executive member for education, said: "This new environment for children and staff should create a centre of excellence which will hold the community in good stead for the future."

Mr Law said: "The people of Blaenau Gwent have experienced a serious blow recently with the decision of Corus to close the steelworks. The Llanhilleth scheme shows that the Assembly and the council are determined to address the situation immediately on the ground." *PICTURED: Llanhilleth will benefit from an 'outstanding' £10m regeneration scheme