WORK began yesterday on the first phase of an #80m project aimed at

transforming Glasgow's Gorbals area.

The ambitious scheme has been more than three years at the planning

stage. It has also involved extensive consultations with the local

community and organisations.

The plan has been drawn up by the Crown Street Regeneration Project

and the New Gorbals Housing Association together with financial backing

from Glasgow Development Agency and Scottish Homes, the national housing

agency.

Centrepiece of the project -- to create an urban village -- is the

proposal to construct 1000 new houses which will be available for sale

or rent. These homes will be built on the former site of the notorious

Hutchieson E housing development.

Two of Scotland's leading housebuilders, Wimpey Homes and Miller

Partnerships, have been selected to build the first phase. This will

involve a total of 270 houses, which are expected to be ready for

occupation by the end of this summer.

Mr Mike Galloway, director of the Crown Street Regeneration Project,

said a great deal of interest had already been expressed in the new

properties by the local community.

''The initial interest has been staggering and if it is followed up,

we believe that as many as 20% of the houses could be sold within the

first couple of weeks of going on sale.

He said every encouragement was being given to local people to stake a

claim in the area's bright new future, including a 10% discount on the

new houses.

The site was acquired several years ago by Glasgow Development Agency

from the district council.

Future phases of the development will include more housing, a

supermarket, shopping centre, and a local park.