The contract to build 12 council houses and associated infrastructure in Finstown, Orkney, has been awarded to local firm R Clouston Ltd.

The provision of affordable housing is a key priority for the council. These 12 houses are the first tranche of a programme that will see in the region of 125 new council houses built across Orkney over the next three years.

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Chair of the Council's Social Services and Housing Committee Councillor Roderick McLeod told a meeting of Orkney Islands Council that he was delighted to be able to announce that the project was underway.

He added: "I am pleased that a local contractor has participated in, and been awarded a contract, under an open and transparent procurement process. Supported by funding from the Scottish government, R Clouston Ltd are scheduled to commence work on site in early 2010. The allocation of the houses is provisionally scheduled for Christmas 2010.

"I wish to record my thanks to all the officials who have assisted in bringing this first chapter to fruition and I hope to make further announcements soon."

(GK/KMcA)