Plans for the major regeneration of Bargoed town centre in the Rhymney valley, South Wales, have received an £8.3m cash injection from the Welsh Assembly Government.

The funding will go towards a range of schemes designed to improve Bargoed, including enhanced public open spaces along the main high street, improved pedestrian zones and a new bus station. More than £3m has come from the European Regional Development Fund and £2.5m of Targeted Match Funding has come through the Assembly Government as part of the funding package.

Caerphilly County Borough Council (CCBC), which is leading the project along with the South East Wales Transport Alliance (SEWTA) and Rhondda Cynon Taf County Borough Council, has also contributed funding. Welsh deputy minister for housing and regeneration, Jocelyn Davies, said: "This package of European funding will be invested to revitalise the town centre, increasing its accessibility and complementing the new major retail, leisure and commercial developments being undertaken."

CCBC leader Lindsay Whittle added: "This decision demonstrates to potential investors and developers that the council and the Assembly Government are committed to turning this proud valleys town into a thriving and bustling economic centre for South Wales."