Local firm DITT Construction Ltd will carry out the project, which will see the relocation of the Scalloway Health Centre into the current primary school, while the primary school will move into the former secondary school building.
Under the scheme, the existing primary school will undergo an extensive refurbishment to create a modern health centre facility. The secondary school will be adapted to make it appropriate for primary pupils. It is understood work will also be carried out to the external road layout and playgrounds.
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The scheme is being funded by NHS Shetland and contracted through Shetland Island Council.
In a statement, Ralph Roberts, Chief Executive of NHS Shetland, and Mark Boden, Chief Executive of Shetland Islands Council, said: "We are delighted that the project has reached this important milestone. We have been working hard to produce a new Health Centre for the Scalloway community, and we are very pleased that the scheme is now progressing. At the same time, this will improve facilities for primary pupils in the area.
"Once the new facility is open this will provide modern facilities for the Practice and help them to provide the best possible care to the local community. We are pleased that our two organisations have worked together to improve services while also ensuring value for money."
(JP/IT)
