Infrastructure secretary Michael Matheson had challenged the UK government to match his funding commitment for the Tay Cities Region Deal.
Over the next 10-15 years, the funding will secure significant numbers of both high-value and entry-level jobs by supporting projects across the themes of skills, tourism, transport and innovation, said the Scottish government.
Matheson said: “A Tay Cities Region Deal of this scale has the power to build on the area’s significant strengths and expertise. I expect City Region Deals to be funded on a 50:50 basis and I call on the UK government to match our commitment and make this a £400 million deal.”
The Tay Cities Region includes Dundee, Perth, Angus and the north of Fife. The Tay Cities Deal brings together public, private and voluntary organisations in the council areas of Angus, Dundee, Fife and Perth & Kinross. The local authorities that make up the zone aim to secure investment and greater local powers with the aim of encouraging skills development and progressing infrastructure such as roads, rail links, buildings and communications networks.
The Scottish government added that it will match the UK government level of investment, should it subsequently announce a figure above £200m.
The University of St Andrews welcomed the funding, saying that it is poised to press ahead with a plans to create 500 new jobs at its Eden Campus at Guardbridge once vital Tay Cities Deal funding has been secured. The university has bid for £30m to further redevelop the site of the former paper mill at Guardbridge. The Tay Cities Deal investment will see the redevelopment of an additional 5,500m2 of existing derelict buildings to provide the necessary infrastructure to co-locate new industry alongside academics.