Construction work is set to get underway on the Castle Street Energy Centre (CSEC) on 01 August 2021, supported by the UK government's Levelling Up Fund.
Three projects along the River Ness in Inverness are being supported with almost £20 million from the Levelling Up Fund.
In addition to support for the redevelopment of the Bught Park and Northern Meeting Park, the Levelling Up Fund is also supporting the development of the new energy centre.
The CSEC will provide heat and energy to Inverness Castle and the Inverness Town House.
Cllr Ian Brown, Leader of Inverness and Area and Co-Chair of the Levelling Up Fund Programme Board, said: "These projects will boost the city's sporting and cultural attractions, preserve key heritage assets, help attract more tourists, and assist in achieving net zero carbon targets."
UK Government Minister for Scotland Malcolm Offord said: "The UK Government is levelling up Inverness with a £20 million investment in upgrading the city's public spaces, facilities and attractions which will help drive tourism and economic growth.
"Together with our support for the Inverness City Region Deal, Cromarty and Inverness Freeport, and other levelling up projects, we are investing more than £109 million to help the Highland region to thrive."
Work is due to begin on the repurposing of the derelict toilet block in the Castle Street car park on Tuesday 1 August 2023, with completion estimated by November 2024.
The new energy centre will meet the energy needs of the newly transformed Inverness Castle Street when it opens in 2025.
City Centre parking will still be available at Castle Street during the construction work, but on a more limited basis. However, parking will be still available at the Eastgate Centre, Rose Street and Strother's Lane car parks.
The Levelling Up Fund projects are delivered in partnership by The Highland Council and High Life Highland.
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