Council officers are busy preparing a detailed submission to the new $500m regional jobs and infrastructure funding pool which is open to councils and private companies in 10 regional cities and 38 rural municipalities.

An application is also being prepared for $5m of federal funds to match $5m in city council funds for the CBD project to be spread over several years.

It is hoped the combined $15m would be enough to complete Liebig Street modernisation from Raglan Parade to Timor Street and some of Koroit Street.

Warrnambool mayor Michael Neoh was in Castlemaine where Regional Development Minister Jaala Pulford unveiled details of the major fund on Monday. Applications open on Wednesday

It comprises three parts - $250 for regional infrastructure, $200m for regional jobs projects and $50m for regional community projects including $25m for jobs training.

"We've known this was coming and are well ahead of the game in preparation," Cr Neoh said

"This project is shovel ready - we have consulted more than 1000 people and council has allocated money in its budget. We are ready to push the button.”

"By sourcing money from the council and governments we will be able to flow the work in stages. 

“A key criteria for approval  is being able to leverage private investment and jobs growth - we are confident that can happen."

Cr Neoh, who is also chairman of  Regional Cities Victoria, encouraged south-west business operators planning major projects to consider applying.

Not-for-profit and community groups are also covered in the funding criteria. 

However, Nationals' regional development spokesman Damian Drum said the new fund meant some communities would miss out on normal support grants.