The Scottish Government has decided to proceed with the Aberdeen Western Peripheral Route (AWPR) after considering the findings and recommendations of the public local inquiry.
The 28-mile bypass will provide a fast link between towns in the North, South and West of Aberdeen, bringing significant benefits not just to the city of Aberdeen but to the whole of the North-east.
Cabinet Secretary for Finance and Sustainable Growth John Swinney said: "This has been a complex issue in which there has been a wide range of issues to consider. There has also been significant public interest in the proposed route, with clear arguments on both sides.
"Having given careful consideration to the issues and arguments, I agree with the Reporters' findings and reasoning, and with their recommendation to proceed with the bypass."
MSP Swinney described the AWPR as one of the most important infrastructure projects in the North East, bringing a range of substantial benefits to the region.
"The route will provide a much needed bypass around Aberdeen linking existing major roads and key locations such as the airport, park and ride sites and the major industrial estates around the city," he continued.
"The bypass will reduce congestion in the heart of the city as well as remove thousands of vehicles from the area's rural roads which are unsuitable for such high volumes of traffic."
Subject to completing the necessary statutory process suitably qualified contractors will be sought in 2010/11.
"However, the Orders need to be approved by Parliament and assuming that is given, we would need to review the remaining stages of the project, including procurement, before issuing a definitive timetable," he concluded.
(GK/BMcC)
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