The proposals will also create in excess of 1,000 jobs.
The local authority's £18.9m Tax Incremental Financing (TIF) scheme is expected to unlock £125m in private investment and also generate hundreds of construction jobs over the life of the project.
Under TIF, councils' fund infrastructure by borrowing against future business rate income generated by the resulting regeneration and development.
This five-year plan includes extending Oban North Pier, upgrading road links to established industrial areas, renewable energy projects and creating new business space at Oban airport.
-- Advertisement --
The development of the TIF model for use in Scotland had been spearheaded by the Scottish Futures Trust.
Commenting on the announcement, Deputy First Minister Nicola Sturgeon said: "The Argyll and Bute TIF will allow major construction developments across the area over the next five years, which will unlock significant economic development and regeneration.
"It will allow Argyll and Bute to maintain and grow a number of industries and sectors that are important nationally such as renewable energy, aquaculture and marine tourism.
"We will continue to use every lever at our disposal, within our devolved powers, to boost capital spending and through innovative financing schemes such as TIF, support jobs, apprenticeships and help the Scottish economy."
Argyll and Bute Council leader Dick Walsh added: "This is fantastic news, both for the people of Oban and the surrounding area, as well as the people of Argyll and Bute as a whole.
"This investment has the potential to create in excess of 1,000 jobs and is going to have a hugely positive impact on the lives of the people of Oban and the surrounding areas, bringing huge private sector investment to the area."
(JP/MH)
