Northwest Vision and Media, the Liverpool Culture Company, the UK Film Council and the BBC have announced the three winners of the Digital Departures film-making scheme: Terence Davies' Of Time And The City; Colin O'Donnell's Salvage; and Leigh Campbell's Starstruck.

Each team gets $494,130 (£250,000) to make a micro-budget feature. The films are now greenlit and will be shot and premiered in Liverpool this year as part of the Capital of Culture celebrations.

Davies, famed for Distant Voices Still Lives, will make documentary Of Time And The City to be produced by Solon Padadopoulos and Roy Boulter. The film is about his past as well as Liverpool's past.

Salvage is a horror film to be directed by Lawrence Gough and produced by Julie Lau.

Starstruck is a contemporary drama about teenagers, celebrities and football, to be directed by Lindy Heymann from Leigh Campbell's script. Andy Stebbing will produce.

Lisa Marie Russo is overseeing the scheme and serving as executive producer.