WORK has officially started on Dorset's biggest regeneration project - which is set to create hundreds of new jobs and provide a massive boost to the economy.

Infrastructure works costing £3 million began at Osprey Quay on Portland as bosses outlined their future vision for the redevelopment of the former Royal Naval Air Station.

As guests were told of the employment, leisure and housing opportunities available on the 80-acre site - which hopes to attract around £30 million of private investment - there were renewed calls to get Weymouth's long-awaited Brown Route relief road built to support the development.

Officially starting the site works yesterday, South West England Regional Development Agency (Swerda) deputy chairman Jeremy Pope apologised to council chiefs, business leaders and other officials for the delays on the Portland Beach Road caused by gas main work which is linked to the Osprey Quay development.

He also warned of more delays to come when work starts on building a new roundabout on the beach road next to the Mere Tank Farm.

Mr Pope told guests: "I appreciate some of you had difficulties getting here but that is work carried out by Transco, over which we have no control."

Swerda acquired the former air station in 2000 and its bold vision for regenerating the area includes providing greater scope for marine industry to come to the island, extra leisure facilities for sailing and other outdoor pursuits and new housing.

Mr Pope said: "This is the first major investment initiative that Dorset has ever seen. The county never really got a look in before, all the interest was on cities like Bristol and Exeter.

"This is an exciting development opportunity and we have already started to attract the big players."

He added: "The Brown Route is obviously very important to this project. Access is absolutely critical to the economic development of Weymouth and Portland and we only wish the relief road plan could be speeded up."

Bill White, of the Weymouth and Portland Chamber of Commerce and Industry, agreed, saying it was important to provide a proper road network if Osprey Quay was to thrive. Infrastructure work at Osprey Quay, which includes the building of a new roundabout on Portland beach road, flood defence work and the laying of new cables, is expected to be completed by Christmas, when development of the site proper should begin.

The plan provides for improved coastguard search and rescue facilities, including a new runway and hangar but fears have been raised recently over the possible transfer of the helicopter service to Lee-on-Solent.

Swerda development manager Bruce Voss said: "We've always incorporated the coastguard facilities as a key part of our plans and we're still discussing the details about any possible relocation."

Mr Voss added: "Plots on the site will start to become available for businesses from next year. We've already had a huge number of enquiries."