NEWPORT'S £13 million theatre and arts centre is set to be completed on time - despite delays after a medieval ship was discovered buried on the site.

Building work on the riverside complex was thrown into turmoil this summer when the timbers of a 15th-century merchant ship were found preserved in the River Usk mud.

Newport council's original plan to allow archaeologists to study the ship before reburying it under the foundations of the arts centre were overturned after a public campaign to save it.

The oak timbers are now being removed and stored in the cold water tanks at Llanwern steelworks until the ship is reconstructed in a viewing gallery under the centre.

Despite the upheaval and hold ups as a result of the historic find, progress on the centre has continued - and it is still set to open its doors as originally planned in August 2004.

The building, designed by architects Austin-Smith Lord, will include: * 500-seat theatre * 150-seat studio theatre * recording studio * exhibition gallery * dance studio * workshop space

It will also include a cafe-bar and the council hope the scheme will regenerate the riverfront and give a cultural facility for Newport and the surrounding communities.

The idea was first conceived by the city's former borough council seven years ago, when the cost was estimated at £10 million.

The Arts Council for Wales was expected to provide more than £6 million of that figure, but will now pay more than £8.5 million of the final £13 million bill, with the shortfall funded by the city council.

Councillor Glyn Jarvis, cabinet member for culture and recreation, said: "The Theatre and Arts Centre is a very exciting development for the city.

"The medieval find at the site amazed everyone this summer, and I don't think we could have dreamt that we would have achieved so much with it - I think all expectations have been exceeded.

"I am very much looking forward to seeing the ship on display just a few yards away from where it was found earlier this year."

* Pictured, a computer image of how Newport's £13m theatre ands arts centre is likely to look