Work on a £1.13 billion City Deal that will bring tens of thousands of new jobs to Glasgow and the Clyde Valley is to formally begin this week after it was approved by ministers at the UK and Scottish governments.

The City Deal, the biggest of its kind in the UK, will fund major infrastructure projects, drive innovation and growth through the support of key sectors such as life sciences, and address challenges in the region’s labour market. These projects will allow a programme of work which will greatly add to the value of the local economy over the next 20 years.

Ministers have now approved an assurance framework and the UK and Scottish governments will each give the City Region £500 million in grant funding. The local authorities will borrow a further £130m.

The City Deal is expected to generate 15,000 construction jobs during the construction period and 28,000 permanent additional jobs once construction is complete; and will unlock £3.3bn of private sector investment.

Specific plans for individual projects within the City Deal will now be developed.

Councillor Gordon Matheson, chair of the Glasgow and Clyde Valley Cabinet, said securing the deal for the region was “a momentous achievement”.

He said: “This funding will bring benefits to our infrastructure, economy and labour market for decades to come by creating tens of thousands of new jobs and increasing our global competitiveness.

“The work can now begin and I look forward to collaborating with all of our partners to deliver this hugely important project.”

Infrastructure secretary Keith Brown said: “I am delighted to be able to endorse the assurance framework for the Glasgow and Clyde Valley Deal ahead of the official commencement of the City Deal next week. As our largest city, Glasgow and the surrounding region is central to driving economic growth. We fully support the deal and the principle of local decision making.

“The Scottish Government is investing £500m in this deal and the Glasgow Clyde Valley partners aim to use it to secure a further £3.3bn of private sector investment. The importance of the assurance framework cannot be overstated, it means the investment programme will be constructed and managed to deliver the positive economic outcomes set out in the deal.

“Through the Assurance Framework, Glasgow and the Clyde Valley partners will work with, and build on, expertise from the likes of Scottish Enterprise, Skills Development Scotland, Transport Scotland and the further education sector, to ensure this Deal is developed in a co-ordinated way. Glasgow and Clyde Valley partners will ultimately be responsible for the funding decisions they take, however this agreement unlocks funding by the Scottish and UK Government to allow partners to get on with delivering the deal.”

The eight local authorities participating in City Deal are Glasgow City Council, East Dunbartonshire Council, East Renfrewshire Council, Inverclyde Council, North Lanarkshire Council, Renfrewshire Council, South Lanarkshire Council and West Dunbartonshire Council.