An upgrade to the Warrnambool airport has slipped down the priority list for the council, despite funding on the table.
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The council did not apply for a grant in the current round of the Regional Airports Program in which Portland and Peterborough airports received funding.
Warrnambool City Council chief executive officer Peter Schneider said a decision was made not to apply for cash in the current round.
"There will be future rounds - the program has $100 million allocated over four years to 2022-2023," Mr Schneider said.
He said the council had decided to prioritise other projects.
"Council is instead focusing efforts on delivering top priority projects - for which external funding was provided - including the $20.25 million library and learning hub, the $10 million Reid Oval redevelopment and the $2.9 million Lake Pertobe upgrade," Mr Schneider said.
"Council was recently awarded funding for the new roof at the South-West Victorian Livestock Exchange and construction on this project will begin soon.
"Council was also successful in attracting funding to design safer boat launching facilities at the Port of Warrnambool."
- Related content: Push for $10 million Warrnambool Airport runway upgrade
Mr Schneider said the council's next priority would be on attracting funding for the construction of the safer launching facilities.
In August last year Warrnambool Airport Advisory committee chairman Stephen Lucas said the airport's runway needed a $10 million upgrade to make it accessible to larger aircraft.
"I think in the longer term, if there was strengthening and widening of the existing runway at Warrnambool, there's possibility for flights to be coming from Sydney for tourism to the Great Ocean Road," he said at the time.
"There needs to be some work done at the aerodrome.
"It's critical infrastructure for this area, for tourism on the Great Ocean Road," he said.
"A lot of the tourists that are going to the Great Ocean Road now are time poor."
The funding is provided on a dollar-for-dollar basis in the program.
The cash is allocated primarily to help owners of regional airports across Australia deliver safer runways, taxiways and make other safety upgrades, according to Deputy Prime Minister Michael McCormack.
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