The scheme for Môn a Menai will focus on creating a strong economic hub linking both sides of the Menai Straits.

Launching the Môn a Menai Action Plan in Anglesey, Leighton Andrews, deputy minister for regeneration, announced that the funds have been allocated over the next three years to drive forward the regeneration of the region.

He said: "Our goal is for the Menai Hub to act as an economic driver for the wider North-west Wales area.

"We are focusing on specific projects which can make a difference to the overall economy of Môn a Menai, in line with the vision set out in the Wales spatial plan - our commitment to Môn a Menai was set out in the One Wales agreement which underpins the coalition government."

Projects included in the scheme are the development of Holyhead's waterfront and port, development and public access to Caernarfon's waterfront and strategic environmental improvements to Bangor city centre.

There is also a focus on skills and training, so the region's workforce will be able to the take advantage of new opportunities that will be created and to meet future economic needs in key sectors such as construction, engineering, nuclear decommissioning and the outdoor sector.

Anglesey Council leader, Gareth Winston Roberts, welcomed the announcement and stressed the importance of new Island jobs; he said: "The closure of Trawsfynydd power station has hit that area particularly hard and the north of Anglesey will face similar economic problems with the forthcoming decommissioning of Wylfa.

"The partnership must, therefore, get to grips with the task in hand and continue to work to attract new jobs to the island and wider area."

Gwynedd Council leader cllr Richard Parry-Hughes added: "I am supportive of the Môn-Menai initiative and we will be working with our partners to ensure the wealth created in the proposed economic hub is spread out to the rims and the outskirts of both Môn and Gwynedd which will be the test of its success."

It is anticipated that EU structural funds will be drawn down and full use made of other EU funding for cross border collaboration with Ireland.