A FUNDING deal for a controversial city bypass has been reached as a shortlist of firms bidding for the £745 million project is drawn up.
Transport Minister Keith Brown said the two developments for the Aberdeen Western Peripheral Route are "great news" and show "welcome progress" has been made since a court challenge against the work was dismissed.
The Supreme Court rejected a legal challenge by protester William Walton last October.
Now a deal has been reached, capping the amount Aberdeen City Council and Aberdeenshire Council will pay for the work.
Both councils will pay £75m, with the Scottish Government picking up the remaining 81% of the cost.
When completed, the new road will carry traffic 28 miles around the city. The construction project includes a second road from Stonehaven in the south and the dualling of the A90 between Balmedie and Tipperty in the north.
The contract is expected to be awarded later this year, while the work is due to start next year and finish in 2018.
A shortlist of four consortiums has been drawn up for the contract: Granite City (Macquarie Capital and Vialia), North East Roads Partnership (Cintra Infrastructures SA and Bilfinger Project Investments GmbH), Scotia Roads Group (BAM PPP, Costain, Iridium and Sir Robert McAlpine Capital), and Connect Roads (Balfour Beatty Investments, Carillion Private Finance and Galliford Try).
Mr Brown said the road project could provide 14,200 jobs in the north-east of Scotland and boost the economy by £6 billion over the next 30 years.
"After years of delay we should not underplay the need to ensure the pace in delivering this vital project continues," he said.
Jim Gifford, leader of Aberdeenshire Council, said he was "very pleased to hear the approved bidders have been selected". He said: "Clearly a lot of work has gone into these bids for what is a project of huge importance to the north-east. I look forward to the outcome of the tender process."
Aberdeen City Council finance convener Willie Young said: "I'm very pleased these major organisations have come forward and bid for the contract, allowing us to move forward to selecting a contractor and beginning work on the route."
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