The new facilities will help meet employers' skill demands

New College Durham is to undergo a major facelift, including the creation of a new drama studio and a network of more than 1,000 computers.

The money is part of a �35m investment programme aimed at improving learning provision for local people.

A learning centre, dedicated sixth form centre and on-site travel agency will also be built.

Tom Crompton, executive director at the Learning and Skills Council County Durham - which provided the �10.3m - said: "The investment will create a more comfortable and creative environment for our existing students and enable more local people to study at the college instead of having to travel further afield."

John Widdowson, principal at New College Durham, said: "The range of facilities will enable the college to cater for a wide range of learning needs as well as the skill demands of leading employers in the county and beyond."

Extra funds have also been raised by borrowing and the sale of old college property.