HUNDREDS of jobs could be back on the cards for Llanelli, and millions of pounds worth of development soon under way, after a deal was struck yesterday. Carmarthenshire Council announced the signing of an agreement with the Environment Agency, Welsh Water, the Countryside Council for Wales and Swansea Council on how to deal with the issue of sewage disposal amid concerns for water quality in the Loughor Estuary.

Carmarthenshire Council director of regeneration, Dave Gilbert, said: "A memorandum of understanding has been agreed by all parties, and we are satisfied that all the requirements that will allow developments to proceed are in place.

"We are progressing with the first application for housing at Machynys West, which is going through the system now, and are hopeful that other developments can also proceed."

Among the more high-profile projects which have been stalled are the proposed £14 million Hilton hotel at Machynys, and Connaught car factory in Dafen, which is likely to create 200 jobs.

Another project which has been held up is former Scarlets star Dwayne Peel's plans for a restaurant at the former pumphouse in North Dock, which is earmarked for multi-million pound commercial, leisure and housing development.

Regeneration executive member Clive Scourfield said: "We are finally at the stage where these developments, which are so vital for the continued regeneration of Llanelli, can proceed.

"We look forward to seeing these projects develop."