The Ministry of Housing, Communities and Local Government approved £2.79m from the European Regional Development Fund (ERDF) for the works, with Durham County Council having already committed up to £1.5m. The remainder of the cash, £1.9m, will come from the Environment Agency.
The scheme will enable the council to open up a 90m stretch of the Cong Burn, which runs below the Market Place. The authority will also look to provide an economic boost for the town by transforming the existing ‘red carpet’ area of the Market Place, where it will create a space for festivals and events.
Cllr Simon Henig, Leader of Durham County Council, said: “We are extremely pleased to receive confirmation of the ERDF funding, particularly as it means that all funding for the project is now in place. I would like to thank everyone for all of the hard work that has already gone into this project.”
Work on the scheme is due for completion by March 2020.