The Haymarket site in Edinburgh has received a funding boost of £9.6m from the Scottish Government.

The investment will fund the initial work on the site of a £200m office, hotel and retail project in the capital.

It is understood the money will go towards facilitating the first phase of works. This includes preparatory work at the four-acre site and involves strengthening two railway tunnels as well as archeological excavations.

The Scottish Government has said more than 3,000 jobs could be created as a result of the initiative.

The multi-million pound investment is coming courtesy of the SPRUCE (Scottish Partnership for Regeneration in Urban Centres) fund, which has been set up with funds from the Scottish Government and the European Regional Development Fund.

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News of the investment was made by Deputy First Minister Nicola Sturgeon on a visit to the site.

She said: "The Haymarket is one of the biggest commercial property projects to take place in Edinburgh and will substantially regenerate this part of the capital, transforming derelict land and creating thousands of jobs and opportunities for growth.

"The Scottish government's investment through the Spruce fund has acted as a catalyst for the regeneration of this site.

"Without this investment crucial remedial work could not go ahead."

Minister Sturgeon continued: "Once complete, this fantastic multi-purpose site will provide much needed, high-spec office and retail space for the city as well as a new hotel for visitors.

"This will allow Edinburgh to continue to compete effectively with other large cities, and help to attract companies from across the globe."

The Haymarket will transform the currently derelict former goods yard next to Haymarket Station into a 650,000 sq ft multi-purpose development, regenerating the area and supporting around 300 jobs during construction.

When complete, the joint venture between Interserve and Tiger Developments will include office and retail space, a hotel and a two-storey underground car park and create around 3,200 jobs.

(JP/IT)