The move signals the go-ahead for the £55.75 million, which will be funded in large part by the Scottish Government through the Scottish Futures Trust.

The Shetland Islands Council (SIC) project is being delivered by hub North Scotland. Main contractors Morrison Construction are now onsite, have begun their site establishment work and will soon be starting their main earthwork operations. The project is scheduled to be completed by late summer 2017.

The four-storey school, which can accommodate up to 1,180 pupils, and the three-storey, 100-bed residential building have been designed by Ryder Architecture.

The new Anderson High School, which is a ‘like for like’ replacement for the current school, will cost £42.01m. The new Halls of Residence will cost £13.74m. Two thirds of the funding for these will come from the Scottish Government, through SFT. Additional works at Clickimin Leisure Centre will cost around £3m and will be principally funded by SIC.

SIC leader Gary Robinson said: “We’ve reached a significant milestone in this project, and I’d like to pay tribute to the enormous amount of effort which our officers – along with all our partners - have put into getting us to this stage. Chief executive Mark Boden, along with director of children’s services Helen Budge and her team, have done outstanding work over the past couple of years to bring us to this point.”

Chair of the SIC’s children’s services committee, Vaila Wishart, added: “The new school will be a real asset to Shetland, and bring enormous educational benefits to our young people. I’m confident that hub North Scotland will deliver a facility for Shetland which we can be proud of for many years to come.”

Angus Macfarlane, chief executive of hub North Scotland, said: “This is a vitally important step for the new Anderson High School project and is of great significance to the staff, pupils and community it will serve.

“As an organisation established to drive improvements to community infrastructure, we are fully committed to delivering a first class facility which will benefit generations to come.”

Grant Robertson, schools programme director at the Scottish Futures Trust, added: “Protecting local jobs. Creating better schools. Achieving value for money. These are just a few of the benefits being delivered through the Scotland’s Schools for the Future programme that SFT manages. I very much look forward to seeing the new Anderson High School open, and witness the real value of the programme with pupils being taught in modern, first-class facilities.”