A £38m scheme, designed to boost economic regeneration in seven of Wales' most deprived areas, has been given the green light by the Welsh Assembly Government and the European Union (EU).

The four-year project has been designed to transform towns and communities across the Môn a Menai and North Wales Coastal Strategic Regeneration Areas, with 14 schemes set to benefit from the cash injection. Funding will be used to upgrade seafront facilities in both Rhyl and Colwyn Bay in a bid to increase tourism, while a range of historic and derelict buildings on the Isle of Anglesey will be restored in order to open them up for economic use.

Town centres in Bangor and Caernarfon will be improved, and the square in Porth Amlwch is to undergo a makeover as part of efforts to improve the links between the town centre and the harbour. In addition to a total of £19m from the EU's Convergence Funds, the Welsh Assembly Government is providing match-funding along with the four local authorities involved, the sustainable transport charity, Sustrans, and the Heritage Lottery Fund.

Leighton Andrews, the Welsh deputy minister for regeneration, said: "This programme of regeneration will create a more attractive climate for investment in the region while bringing about sustainable improvements to the built environment for the benefit communities in North Wales. "Backed with European funding, the suite of schemes will target town centres to ensure they will be in pole position to attract private sector investment when the economy improves."