The government has handed nearly £100 million in funding to the London Thames Gateway Development Corporation (LTGDC).
The cash will go towards securing the quango's ongoing work for the next two years.
The organisation announced today that £52 million will be spent on 'town and neighbourhood centres', £27 million on transport-related projects and £9 million on the environment in the period to March 2008.
Projects looking to receive funding include the creation of a new town centre in Canning Town, east London, better transport in the east London riverside area and improvement to waterways in the Lower Lea Valley.
Peter Andrews, Chief Executive of the LTGDC, said: 'This budget for the next couple of years is adequate for the beginning of long-term strategic projects.' It shows, he said, that not all the government's money is being sucked in by the Olympics.
However, he warned that larger sums will be needed in the future. 'In the spending review next year,' he said, 'it will be vitally important that we have adequate funding going forward.' by Ruth Slavid