The redevelopment of Dundee’s central waterfront has been praised as a “far-reaching project” that will have a significant economic impact on the city.

A team of consultants was asked by the Scottish Executive to look at how Dundee, Aberdeen, Edinburgh, Glasgow, Stirling and Inverness were spending the money allocated to them under the cities growth fund.

A report released last week suggested the fund, totalling over £170 million, was not making as much impact as had been hoped. However, it seems the waterfront project is being more favourably regarded.

The consultants said, “With the exception of Dundee, funding is generally being spent across a wide range of projects, many of which are little different to those that the local authority and its partners would normally support.

“The (waterfront) project represented something of real scale and therefore had the potential to have a real impact on the city region.”

“The activity at the waterfront was said to have created a renewed interest in the periphery of the waterfront area,” the consultants said in their report to ministers.

“Investments in excess of £20 million have already been secured in the form of new commercial and hotel developments. The proposal is that the money from the land receipts on these and subsequent sales will fund the end stages of the project.

“Land values in Dundee were also said to have increased as a result on the increased activity around the waterfront.”

Private-sector investment totalling about £55 million in residential, commercial and retail property in and around the waterfront over the next 15 to 20 years is predicted.

“The view in Dundee is that the initial investment of the cities growth fund allocation in infrastructure is necessary to secure the longer term improvements for the city region,” the consultants say.

The consultants added that the long-standing partnerships between the city council and other local agencies had played a key role in the success of the project to date.