Four top companies are competing for the contract to create a new world-class Central Library in Liverpool.

The city council launched a Europe-wide search earlier this year for a blue chip development partner for the £50 million PFI project.

The building on William Brown Street has gradually fallen into disrepair over many decades and suffers from problems such as damp and a leaking roof.

Under the scheme, the Grade Two listed parts of the building which were built in the 1850s including the facade and stunning Picton Reading Room will be restored to their former glory.

The sections built in the 1950s and 1970s following World War Two bomb damage will be demolished and rebuilt to make the most of the available space.

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The four bidders are: Inspire Partnership - Babcock and Brown and Shepherd Construction Ltd; Kajima Partnerships Ltd and Carillion plc; Information Resources - Kier Project Investment and Land Securities Trillium and Community Solutions - Morgan Sindall Investments Ltd and HOCHTIEF PPP Solutions (UK).

The new look library will include a new home for the Liverpool Record Office, titled Liverpool Memories. It will house some of the city's most historic treasures from the last 800 years in purpose built secure storage.

Council Leader Warren Bradley said: "This is the biggest ever single investment in the city's library service.

"It will enable us to upgrade and restore the historic parts of the building, creating an absolutely first-class 21st century facility in the heart of the city's cultural quarter.

"This project will transform Central Library into a place where reading and learning is exciting and stimulating, and provide a new home for books - which will remain at the heart of the service."

Over the next six months, the bidders will make presentations about their proposals and the city council will carry out a full and detailed evaluation before the winner is chosen next summer.

Work is expected to start on the scheme in 2010, with the new look library reopening in 2012.

(CD/JM)