The Wollongong Bicentennial Acquisitive Sculpture Award was launched on Friday at the botanic gardens, with Wollongong City Council calling for expressions of interest by artists across the country.
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The winning sculpture will be selected by a curatorial panel, with an acquisitive prize of $30,000. There is also a People's Choice Award worth $3000.
"It's reflective of what's happening right now in Wollongong, and it really shows the maturity of the city," said councillor Leigh Colacino.
Up to 18 sculptures will be placed throughout the botanic gardens, but only the winning piece will have the honour of becoming a permanent feature.
"The botanic garden is a perfect setting for sculptures," said Wollongong Lord Mayor Gordon Bradbery.
Mr Colacino believes the award will attract sculptors from all over Australia.
"$30,000 is a great amount. This award is a great chance for sculptors everywhere; and it's what the artists who decide to live in the Illawarra deserve," he said.
Mr Bradbery emphasised that this was only the beginning of a range of activities designed to recognise the multicultural stories that make up the region's history.
"The bicentennial marks 200 years of European history in Illawarra, but at the same time, we want to be respectful of other cultures," he said.
The theme for the upcoming celebrations is Illawarra 200: Shared Values, Shared Future.
Events will begin in May and continue well into 2016.
Expressions of interest close on May 25.