A landmark investment project with a billion-pound budget could transform Monmouthshire after the deal was pressed into action last week.

The City Deal, first in Wales, would funnel a huge £1.2bn investment in transport infrastructure, bring billions more in private investment and create thousands of jobs across south Wales.

Monmouthshire County Council joined with nine other south Wales council leaders last week to unveil the Cardiff Capital Region city deal alongside First Minister Carwyn Jones and former secretary of state Stephen Crabb.

Peter Fox, leader of Monmouthshire County Council, said the deal would herald a ‘different perspective’ for the region’s economy.

“Individual councils doing their own thing is not going to drive the level of changes that are needed. We know each authority will get something different out of the city deal, but everyone will benefit,” he said.

Much of the investment will go into developing a new South East Wales Metro connecting Abergavenny and the surrounding areas in a network stretching as far as Porthcawl, and across south Wales, driving economic growth.

The deal is hoped to create thousands of new jobs across the region, and stoke around £4bn of private investment over a 20-year period by connecting surrounding areas with Cardiff’s economic power.

MCC Chief Executive Paul Matthews said: “I’m really pleased that a City Deal has been agreed. If used wisely, £1.2 billion can make a real difference in building a local economy that our children will thank us for. It is a 20-year deal and the events of this week bring us to the ‘end of the beginning’.

“There is a huge amount of work to do now in developing an investment portfolio that will deliver for the region and we would hope to put this portfolio to Council before the end of the year. Ultimately the Deal is about creating wealth. The private sector is clearly key to this so they need to feel engaged and to be active participants in the development of the programme.”

Almost three-quarters of a billion pounds will be spent on the Metro, cutting journey times, and electrifying the Valley Lines.

Another £495m has been earmarked for other schemes within the region.

MCC, and nine local authorities, will pour in £120m, adding to the £500m each invested by the Welsh and UK governments.

Another £100m from the European Regional Development Fund will make it the largest per capita city deal agreed.

The plans aim to drive affordable housebuilding across the region, with developers offering affordable homes, connected by the Metro, away from more expensive plots closer to Cardiff.

The deal will also spearhead improvements to wifi on public transport and set the foundation for possible further fiscal autonomy for the region.

Across the region, both major cities - Cardiff and Newport - will combine with Monmouthshire, Blaenau Gwent, Bridgend, Vale of Glamorgan, Rhondda Cynon Taff, Merthyr Tydfil, Caerphilly, and Torfaen.