Four Wollongong projects will share in $50 million worth of funding in the latest round of Resources for Regions grants.
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The state government program sees funds allocated to communities impacted by mining.
After a review of the program, the latest round of funding was revised to ensure at least $1 million was secured for each of the 24 eligible councils, with the remaining $26 million weighted to the most mining-affected communities.
"I listened to the needs of mining communities and organisations and took action and the revamped program is funding a broader range of projects and ensures all mining-affected towns are guaranteed a fairer share of funding," Deputy Premier John Barilaro said.
In the Illawarra area, only Wollongong and Wollondilly local government areas are eligible for funding.
In the Illawarra the four projects will receive a total of $1.4 million, including $250,000 to upgrade backboard and other facilities at the Snakepit at Beaton Park and $352,470 for a pump track that forms part of the Cringila Hills Recreation Master Plan.
The latest stage of the Grand Pacific Walk will get $400,000 and a project to create local history tours and videos will get $138,000.
"I welcome these initiatives and any contribution to the improvement of facilities in the city is most appreciated," said Wollongong Lord Mayor Gordon Bradbery.
"They'll be spent locally and that will provide another stimulus to the local economy, injecting those funds into the region."
Wollondilly Shire Council had one successful project - the construction of a walking and cycling path linking Picton and Tahmoor.
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