A funding agreement has been reached for the AWPR/Balmedie-Tipperty, capping payments for the councils involved.
The funding agreement, which sees the Scottish Government confirm its 81% share of £745 million costs, will ensure Aberdeen City Council and Aberdeenshire Council’s 9.5% share is capped at £75 million each.
The news of this arrangement came on the same day a shortlist of construction firms bidding for the scheme contract was formally published.
Transport Minister Keith Brown said: “The benefits of the AWPR and Balmedie are clear, with the scheme expected to deliver 14,200 jobs in the north east and boosting the economy to the tune of £6 billion over the next 30 years.
“After years of delay, we should not underplay the need to ensure the pace in delivering this vital project continues.
“These two latest developments are great news for everyone involved in the Aberdeen Western Peripheral Route.
“They clearly demonstrate the welcome progress made, in a relatively short period of time, since the Supreme Court dismissed the appeal last October.”