PROGRESS on the £11.3 million Droitwich canals' restoration project has been described as encouraging by county councillors who are keeping an eye on the scheme.

A report outlining the progress of the project was discussed at an overview and scrutiny steering committee at Worcester's county hall yesterday.

Mark Middleton, Worcestershire County Council's head of planning said the scheme was now on schedule after planning permission was granted by Wychavon District Council for a replacement reed bed habitat.

This is to be created near the site to ensure the restoration does not diminish existing wildlife and habitats.

County councillor for Droitwich Peter Pinfield said: "It is very encouraging that the end is in sight. When completed it will bring back an historical and unique environmental scheme that will benefit the whole of Worcestershire. It will create jobs, improve our tourism economy, create a linear park, improve wildlife preservation and probably change the face of Droitwich."

Mr Middleton said there was a project shortfall of £757,000 - but was sure with local fund-raising efforts led by the Waterways Trust it could be achieved.

"We are confident that this gap can be bridged. We really do believe that we can raise that small amount of money," Mr Middleton said.

The Worcestershire county and Wychavon district councils have both contributed £1 million to the project, with the rest of the money being given by the Heritage Lottery Fund - £4.6 million - and Advantage West Midlands - £3.1million.

Work on the project is due to start early next year with its competition expected in late 2009.

"It is a multi-faceted project. It is one of the largest projects that will be happening in the area next year and it's something we are looking forward to seeing completed," said Mr Middleton.

The committee was told Worcester City Council had not been involved in the project so far, but would be invited to do so as the canal stretched as far as Diglis. Mr Middleton said he believed the canal would encourage people from around the globe to the area, and would also be of benefit to local residents and businesses.

The scheme will create a 21-mile cruising ring for boaters that would be unique in Europe. The restoration would not just put Droitwich on the map, but would also attract great benefits for Worcester too, as it occupies a prime spot on the route.