PLANS for a £1 billion project to transform the old Llanwern steelworks site were today lodged with Newport City Council.

As exclusively revealed by the Argus, 4,000 homes and 6,000 jobs could be created if the massive scheme is approved.

Regional manager of St Modwen Developments, Rupert Joseland, said: "We believe that our proposals provide an exciting opportunity for this derelict brownfield site."

Mr Joseland agreed there would be concerns over increased traffic on the existing Southern Distributor Road (SDR), but said the plans included improving access and building new junctions on the SDR. He added about 200 homes would be built each year for 20 years, so the effects on traffic and facilities would be gradual.

There would be a mix of apartments, town houses and luxury detached homes, with about 800 homes dedicated as "affordable housing", aimed at the elderly and first-time buyers. Most of the £1 billion will come from the sale of the homes.

Of the 6,000 jobs, 1,800 will be in construction with others created as a direct result of the demand for trades because of such a large development, as well as those in the industrial units included as part of the plan.

St Modwen promised local people would be employed in the reclamation work, which Mr Joseland said could start before the end of this year.

Metals are present on the land but St Modwen are confident they will not cause a problem as the site will be capped with a half-metre surface of soil and the water course protected.

Any potential flooding risk has been dealt with by the planned creation of three linked lakes, to act as a drain for surface water. It is understood the Environment Agency supports the proposals.

Water from the village would also be pumped into the Severn Estuary under an existing licence, while soil dug to create the lakes would be re-used on-site.

Plots of between five and ten acres will be sold off to house building companies, who could start work next year.

One hundred acres of the 600-acre site would be devoted to employment space such as offices, factories and warehouses. Two primary schools, shops, bars, restaurants and convenience stores would be included in the district centre.

It is unclear as yet who would build or fund the schools. Council leader Bob Bright said today's application showed confidence in a city of enterprise and innovation, demonstrating how far it had come in a short time.

"Just five years ago the Llanwern site was the scene of devastating job losses. Today this site stands as a symbol of Newport's exciting future," he said.

Public exhibitions are being held at the exam hall of the University of Wales College Newport campus, Nash Road on Monday and from 10am-5pm at Newport Centre, Kingsway.