![Bendigo MP Lisa Chesters says the federal government's new regional grants program is open, competitive and merit based. Picture by Darren Howe. Bendigo MP Lisa Chesters says the federal government's new regional grants program is open, competitive and merit based. Picture by Darren Howe.](/images/transform/v1/crop/frm/189568677/de00815a-9ac3-4c54-8221-279b77af8027.jpg/r0_515_4928_3286_w1200_h678_fmax.jpg)
UPDATED, 4.25PM: City of Greater Bendigo mayor Andrea Metcalf has welcomed the guidelines of the new regional grants program, which could be used on major capital works projects.
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"The City welcomes the announcement the new regional grants program will be opening shortly," she said.
"Now further information is available, the City will evaluate its current capital works program and determine what it will apply for.
"Bendigo Art Gallery will be a top priority for seeking federal government support through this program and staff will consider the impact of grant timelines on the project."
EARLIER: A new federal government regional grants program could see major projects in Bendigo receive funding, but it may be too late for the planned $48 million art gallery redevelopment ahead of the 2026 Commonwealth Games.
The guidelines for the $600 million Growing Regions Program were announced by Member for Bendigo Lisa Chesters and infrastructure, transport and regional development minister Catherine King on Monday, May 8.
The grant program has replaced the Building Better Regions Fund, which was axed in October last year following an auditor's report.
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"There's been a lot of speculation about what will replace the former federal government's Building Better Regions fund," Ms Chesters said.
Ms Chesters said the new program was "much fairer" than the old one, as it would be a "two-step process of inviting an expression of interest first".
Local governments and not-for-profit organisations could apply for grants between $500,000 and $15 million through the program, which would be "open, competitive and merit based".
The grants could be used to cover up to 50 per cent of eligible project costs, with lower co-funding requirements in place to support First Nations, disaster-affected and remote applicants to make their projects a reality.
In Bendigo, the Bendigo Art Gallery has still been waiting for a federal government commitment for its $48 million redevelopment.
The City of Greater Bendigo had previously applied for $10 million from the Building Better Regions Fund.
As expressions of interest for the new program would open on July 5, it may be too late for the project, which was number one on the city's priority projects.
The gallery had been touted as a "culture hub" for the Victoria 2026 Commonwealth Games, however city mayor Andrea Metcalf said the redevelopment could be shelved.
"It will get to a point where all the work will be done in terms of the design work, and so that if we don't have enough time to build it, that'll just hit a pause button then and we'll pick that up after the Comm Games," Cr Metcalf told The Advertiser last week.
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Other things on the city's "wish list", Cr Metcalf said, were an upgrade to the Golden Dragon Museum and a shelter for the Bendigo Livestock Exchange.
A redevelopment of the Bendigo Showgrounds was also listed as a priority project.
The City of Greater Bendigo has been contacted for comment.
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