Argyll and Bute Council has said an additional £250,000 is to be invested at Dunoon esplanade.
The improvements are part of the first phase of a long-term plan to improve walking and cycling routes in the area.
Earlier this year, the local authority's strategic transportation team secured almost £1m of funding from the Sustrans Community Links Programme; of this, £250,000 is being committed to this project.
The award was match funded by £250,000 from the local authority's regeneration budget for Dunoon, which has been funded through the CHORD initiative. It will also complement the public realm enhancements planned as part of the Queen's Hall project.
Under this scheme, the esplanade will be resurfaced from the town centre to Kirn with new asphalt, with red stone chips rolled into the mixture and will be a mixed-use surface for both pedestrians and cyclists. Changes to the outside of the leisure centre, with the bus lay-by being removed and the footway being widened. A new, modern bus shelter will also be installed.
In addition, the footway next to the old marshalling area will be widened, with three historic bus shelters which block the pavement being removed to allow for easier pedestrian movement.
Two new access points from Alexandra Parade will also be created, at Dhailling and Ashgrove Care Home, allowing for easier access to the esplanade.
A tender for the work has been issued and a contractor should be secured early in the new year, with work beginning towards the end of January. It is anticipated the project will be completed by March 2015, with the entire works to be fininshed by the summer.
Moya Ingram, Strategic Transportation Manager, said: "We're pleased to be moving forward with this project and have been working closely with colleagues across the council, both in the public transport and regeneration areas, to ensure that this project complements their objectives.
"As one of our key coastal towns, the council has made a big commitment to improving Dunoon both for residents and visitors, and this project will play its part in that. With an improved esplanade it should be easier for people to get about, hopefully encouraging them to make healthier travel choices.
"This is all part of our wider strategy to make the most of Dunoon's waterfront, unlocking its significant development opportunities and creating a welcoming gateway for visitors.
"The work will hopefully be completed by the end of March 2015, although this is an ambitious timescale. We'll be keeping people updated on the progress of the works so keep an eye out on the council's website and in the local paper."
(JP/IT)
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