Social landlord Hjaltland Housing Association announced on Tuesday that local firm Garriock Bros Ltd will undertake the three-year-long civil engineering job.
Scottish housing minister Paul McLennan was in Shetland on Tuesday to make the essential announcement.
Without the investment from the Housing Infrastructure Fund (HIF), the Staneyhill project would have been unable to move from the planning to the construction phase.
The minister said:
“This is a significant investment in affordable housing supply in Lerwick.
“It will make a huge contribution to the housing challenges being felt by Shetland, with particular pressures on Lerwick itself.
“Recognising the challenges and barriers facing our rural communities, we will continue to support these areas and face those challenges head-on.
“High-quality, highly energy efficient and affordable housing is a key pillar of tackling these issues, and this project will be a big step in working towards removing those barriers locally.”
Chief executive of Hjaltland Housing Association Bryan Leask said the association appreciated the commitment from the government. He said:
“This project supplements the existing housing schemes we are currently developing through the affordable housing supply programme at Scalloway, Aith, Brae and Walls and reaffirms both ours and the Scottish Government’s commitment to the communities of Shetland.”
The association’s head of investment, Paul Leask, acknowledged the substantial effort that went into taking the project to the construction phase. He said:
“We have completed extensive design work with significant input from the public and other stakeholders, and I’m really looking forward to seeing those designs come to fruition.”
Garriock Bros’ contract manager Arthur Robertson said the work would not only help provide much-needed housing in Lerwick but also provide employment security for the company’s workforce.
“This work will help to ensure security of employment for the current workforce and provide opportunities for new personnel to learn and gain experience in the construction industry.”
