The leader of Aberdeen City Council has welcomed a proposal to create a bonds scheme which could attract £500 million of investment in North-east infrastructure.

Councillor Barney Crockett said the plans, which are at an early stage, were visionary and could transform Aberdeen city and shire.

The ACSEF initiative, which will be unveiled at the ACSEF economic summit, aims to increase private and public investment, including from the energy industry and Central Government, in the area's infrastructure to secure future business growth and cement the region's position as a world energy hub.

The organisation believes a bond scheme could be used to encourage investment by private companies to fund projects including new road building schemes; improving the existing roads infrastructure; the Energetica corridor; a renewables energy centre; bus, train and ferry transport proposals; and improvements to the Aberdeen Exhibition and Conference Centre.

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Councillor Crockett said: "The UK government has a fresh interest in Aberdeen city and shire as a key driver of the UK economy and that's something that cannot be over-estimated.

"Aberdeen City and Aberdeenshire Councils, businesses and the Scottish and UK governments have to make the best of what could be a massive opportunity for the area and the British economy.

"Better infrastructure can not only improve the quality of life in the region, but improve and create business opportunities and growth, helping to drive the economy not only of this area, but the UK as a whole."

"We are testing the water at the moment to gauge the level of interest from the business community and at Scottish and UK-government level. The prize is enormous and businesses do realise that if we get the money to match the level of ambition in both the public and private sector that this area could be a transformed part of the world."

If the bond proposal succeeds, it could help to secure £8billion in revenue for the Treasury and safeguard 22,000 jobs.

(CD)