Keith Brown, Cabinet Secretary for Infrastructure, Investment and Cities, has confirmed the cost of the Aberdeen Western Peripheral Route/Balmedie to Tipperty (AWPR/B-T) scheme has been reduced by almost £220m over the lifetime of the contract.

The contract, which was awarded to Aberdeen Roads, covers the construction, finance, maintenance and operation of the new roads.

Cabinet Secretary Keith Brown said: "I'm delighted the deal to deliver the Aberdeen bypass construction is now sealed. While the overall estimated scheme costs remain at £745 million, the contract value, which is around £550 million in net present value terms, is almost £220 million less than the pre-tender estimate and amounts to a reduction in payments over the life of the contract of approximately £26.5 million per year. The capital cost of construction also came in under the £472 million estimate, (cost at 2012), by £11 million on a like for like basis.

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"Our robust procurement approach has been successful in driving efficiencies in both the long term maintenance operations and the funding of the project. Following the procurement process – the shortest ever for a project of this size and complexity – we are also bringing forward the scheduled completion dates for the Craibstone and Dyce Junctions by autumn 2016 and the Balmedie to Tipperty section by spring 2017, following requests from our stakeholders and subsequent discussions with the contractor.

"I'm sure this news will be widely welcomed by local communities, road users and businesses in the north east and from across Scotland, as this will allow early benefits from the project to be realised in these areas. The Aberdeen bypass is now well and truly on its way."

Councillor Jenny Laing, Leader of Aberdeen City Council, added: "Aberdeen City Council has committed up to £75m to this project so I am certain that the public will be relieved and pleased to learn that we have reached financial close and that work to build the road can now begin."

(JP/MH)