The substantial upgrading of the hydro electricity generating scheme on the remote Knoydart peninsula in Lochaber has attracted the biggest ever package of assistance from Highlands and Islands Enterprise's (HIE) Community Land Unit (CLU). The CLU has committed £135,000 towards the upgrading of the estate's electricity supply, which powers homes in and around the village of Inverie.

The present hydro facility was built by a previous Estate owner in the 1970s but has suffered from lack of maintenance over many years and is now considered dangerous and unreliable. However, the facility is extremely important to this remote community - which is only accessible by boat - and has the potential to generate considerable revenue, which will help with the development of other projects and businesses in the area. It is anticipated that when the project, costing £427,000, is up and running it could represent the largest single source of income for the Knoydart Foundation.

The hydro scheme was initially built without planning permission - and any upgrading was dependent on gaining retrospective consent from The Highland Council. This was granted earlier today (Monday 14th August). The plans are also dependent on a bid for almost £200,000 from the ERDF Special Programme, which will be submitted next month. The Knoydart Foundation is contributing £100,000 of its own funds towards the scheme, a substantial amount for the 65 strong community.

The estate was bought by the Foundation in March 1999 for £750,000 with HIE contributing £75,000 towards the purchase price. They have now set up Knoydart Hydro Ltd to manage and operate the hydro scheme on a 25-year lease basis. It is expected that electricity sales will increase over the next four years with proposed new houses and workshops, generating a regular source of income for the foundation, which will be invested in other community assets.

The Knoydart Foundation - whose members include the Knoydart Community Association, The Highland Council, The John Muir Trust, The Chris Brasher Trust, Kilchoan Estate and HIE - hope that work on improvements to the hydro scheme will start next year with completion in 2002.

Chair of the Knoydart Foundation, Councillor Charlie King said: "Upgrading the hydro scheme is crucial to the future development of Knoydart and now looks increasingly likely to go ahead. The local community have raised substantial funds for this project and an adequate and reliable power supply would transform life in Inverie and the surrounding area."

Head of the CLU, John Watt said: "Strengthening communities is one of the HIE network's key objectives. This investment, the biggest made by the CLU, contributes directly to that strategic priority.

"The development of a sustainable, reliable and plentiful power source, which is environmentally friendly and affordable, is fundamental to the long term development of this peripheral community."