Plans for a new business park at Oban Airport have progressed with Argyll and Bute Council appointing Robertson Construction Northern as the main contractor. Project delivery organisation hub North Scotland will oversee the development.

The project is a key part of the council’s Tax Incremental Financing (TIF) Pilot Project for the Lorn Arc Area. This funding mechanism allows the council to retain a portion of Non-Domestic Rates generated within a specific zone to invest in local infrastructure development.

This initiative aims to deliver the necessary infrastructure for a fully accessible Oban Airport Business Park, attract private sector investment, and foster an aviation, engineering, and logistics cluster. It also seeks to combat population decline in Argyll and Bute by creating more higher-paid employment opportunities for local residents.

Planning permission is in place for the first of two planned commercial buildings for lease, although construction is subject to a £7.68 million funding application to the Community Regeneration Partnership Fund. Alongside this, Councillors have already committed £7.25 million from the TIF fund to develop essential roads, infrastructure, and utilities on the site. £1.6 million of this has been approved for initial development costs to keep the project on schedule.

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The business park development will also incorporate a West Coast UAV Logistics and Training Hub, supported by up to £4 million from the UK Government through the Argyll and Bute Rural Growth Deal. This investment aims to position the airport as a leading research and development centre for Unmanned Aerial Vehicle (UAV) technologies, capitalising on recent successful trials using drones for essential service delivery in remote communities. The funding will support Scotland’s first specialised drone training and research centre, alongside state-of-the-art hangars with maintenance facilities for both UAVs and general aviation aircraft.

Elliot Robertson, Chief Executive Officer, Robertson Group, commented: "Argyll and Bute Council’s vision for Oban Airport is a strong example of how innovative funding models like TIF can unlock critical infrastructure. By combining forward-thinking investment with high-quality construction, we’re not only enabling new business and research opportunities, but also laying the groundwork for sustainable economic growth in the region. It’s a project that shows how construction can help turn ambition into reality for rural communities."

Ian Phillips, Regional Managing Director, Robertson Construction Northern, added: "This project represents a significant investment in Oban’s future and an opportunity to deliver the infrastructure needed to support business growth, innovation, and employment. It builds on the ongoing collaboration between Robertson, Argyll and Bute Council, and hub North Scotland, and we look forward to helping bring these plans to life."

Council Leader, Councillor Jim Lynch, said: "I’m delighted to announce the appointment of hub North Scotland and Robertson Construction on this project. Both organisations have long history of successful community projects, and I am excited to see this innovative project progress and help put the area on the aviation map."

Richard Park, chief executive of hub North Scotland, said: "We have had an excellent long-term working relationship with Argyll and Bute Council and the Oban Airport development is a further demonstration of that commitment. This will be a transformational project which will create great opportunities for the airport and the local communities."