The �16m Firstsite:newsite scheme aims to create a space for contemporary arts and culture for Colchester and the East of England.

On Monday the East of England Development Agency (EEDA) confirmed it was awarding �6m to the scheme, planned for the St Botolph's quarter of the town.

It is the first major arts project to be supported by the EEDA.

Firstsite:newsite facilities Presentations of local, national and international exhibitions Exhibition space for the University of Essex collection of Latin American art Learning areas to allow people to take part in workshops Meeting facilities for major conferences

Colchester Borough Council chief executive Andrea Hill welcomed the �6m EEDA grant as "excellent news".

"Such a large investment demonstrates EEDA's confidence in the commitment and ability of the project's partners to create a landmark visual arts centre for Colchester and the region," she said.

The regeneration of the area is expected to lead to �100m of investment over the next seven years, with 45 new businesses predicted to set up and half a million additional visitors being attracted to the city.

EEDA board member Yasmin Shariff said: "Throughout history the East of England has inspired some of the UK's most talented artists - Henry Moore and Thomas Gainsborough both lived and worked in the region.

'Inspirational facility'

"Firstsite:newsite will provide inspiration and opportunity for talent to continue to flourish here in the 21st century.

"We are already attracting international talent to compete for the design of this fantastic new landmark.

"With our partners, we will create a truly inspirational facility which will show that the East of England has space for ideas that capture the imagination of people here and across the world."

The partnership includes Arts Council England East, Colchester Borough Council, Essex County Council, the EEDA and the University of Essex which will oversee the development of the project.