The local authority is developing the facility which will replace the current Montrose House and Stronach Day Services.
The new Montrose House will provide 30 residential places for vulnerable older people and create a resource centre to support older people to remain in their own homes for as long as possible.
The care home will be built to a high quality specification and includes en suite bathrooms and access from each bedroom to secure gardens which feature activity space, seating and shaded areas. Islanders have been involved in the project from the outset, and were able to view the designs early in the process and hear about the benefits the new home will bring to the community, as well as sharing their opinions on the proposals.
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Councillor Anthea Dickson, Cabinet Member for Social Services and Health, said: "This is a significant investment and demonstrates our commitment to provide the best possible care for our older people. One of our key priorities is to support older people to stay in their own homes for as long as possible.
"The development of a new resource centre at Montrose House will enable us to focus on supporting people in their homes, while the new care home will provide improved care for older people on the island."
John McClelland CBE, chairman of hub South West added: "Hub South West develops innovative, quality and value for money community projects including schools, health centres and care homes. Montrose House is the first construction project for this area and we selected Kier Construction as they are a national business with a strong local presence which will bring significant benefit to the local economy."
Residents will be able to move into their new home in September 2014.
(JP/MH)
