Theatr Powys had to relocate to a nearby industrial unit after the fire

The Theatr Powys building in Llandrindod Wells has lain empty since the blaze in September 2000.

It forced the company to relocate to a nearby industrial unit.

But thanks to a �647,000 grant from the Arts Council of Wales, the building work worth nearly �1m should be completed by the end of next summer.

Valued at more than �972,000, parts of Theatr Powys' base will either be rebuilt or refurbished.

As well as the grant, money for the project has come from an insurance payout over the fire.

The building work will include a new rehearsal studio.

The fabric of the building was damaged and we lost an enormous amount of archive material Ian Yeoman, Theatr Powys

Theatr Powys, which works with schoolchildren, said that if the arts council grant application had failed, the future of the company may have been in doubt.

Theatr Powys' artistic director Ian Yeoman said: "A substantial part of the roofing will have to be replaced.

"The fabric of the building was damaged and we lost an enormous amount of archive material, technical references and costumes through smoke and water damage.

"It was an extraordinary inconvenience, but we kept going and now we're looking forward to moving back in."

Work has begun to restore the building

An electrical fault is believed to have caused the fire at the former school in Tremont Road five years ago.

Powys councillor Louis Williams, board member for the arts, said: "Theatr Powys not only provides a key educational programme but also a vital service to the community by touring schools, village halls, arts centres and theatres across the county."

Dr Kath Davies of the Arts Council for Wales described Theatr Powys as "one of the foremost theatre in education companies in Wales".

She added: "The refurbished building will offer state-of-the-art rehearsal and workshop facilities for the company and for young people in Powys."