The NHS Grampian Board gave its formal approval yesterday to the project to deliver the new Baird Family Hospital and ANCHOR Centre at the city’s Foresterhill Health Campus.

But while the project was proposed to be delivered for £150m when it was initially announced in August 2015, the Board now expects the development to cost £163m.

A report which was considered by the Board prior to its approval stated: “The previously reported project budget was £150m. As a result of design complexities and site conditions identified during the preparation of the outline business case, this has increased to £163.7m. This increase is required to meet the clinical brief, deal with the site conditions and deliver world-class buildings for clinical reasons.”

The significant milestone will allow the project to be formally considered by the Capital Investment Group, Scottish Government Health and Social Care Directorate, later this month.

The new facilities will help modernise patient care and facilities at the Foresterhill Health Campus, which is Europe’s biggest healthcare site, and is part of NHS Grampian’s £300m investment in new or upgraded facilities across the North East.

Graham Construction was selected to develop the two facilities in December 2016.

Gary Holmes, Scottish managing director for Graham Construction, said: “We are privileged to be working with NHS Grampian and its stakeholders in the development of the Foresterhill Health Campus and in equipping it to offer the highest quality of care to the region for years to come. This is a major step forward.”

Jackie Bremner, who is the project director for NHS Grampian, said: “This is a very exciting and important milestone which will allow the project to move one step closer to becoming a reality. It is also the result of 3 years of hard work which has involved hundreds of people including clinical staff, patients, members of the public, designers and construction colleagues.

“It is starting to feel real now - in a year or so these magnificent new facilities, which will benefit patients and their families for many years to come, will have begun to take shape.”

She continued: “Over the next few months work to develop the detailed design and construction plans with our construction partner Graham Construction and their design team will be completed ready for the main construction programme to commence in the spring of 2019.

“Clinical staff, patients and members of the public have been involved from the outset and we hope they will continue to help us shape the design of facilities and services over the life of the project.”

She also said that services in a number of existing buildings are relocating elsewhere on the Foresterhill Health Campus to allow these facilities to be built.

“In advance of the main construction works, which should begin in the spring of 2019, preparatory work to demolish existing buildings, road realignment and a range of service diversions is expected to begin in the autumn,” she said.

The services delivered from the Eye Out-patient Department are relocating to refurbished accommodation in Aberdeen Royal Infirmary (ARI) in the summer of 2018.

The Foresterhill Health Centre is moving to a new purpose built health centre to the west of the Campus, being developed by hubCo and due to open in the spring of 2018.

The breast screening service moved last month into temporary accommodation in ARI until they move into their new accommodation in the Baird Family Hospital in 2021.

Jackie added: “These moves, along with the development of the Baird Family Hospital and the ANCHOR Centre, will change the Westburn Road face of the Foresterhill Health Campus in Aberdeen and support the delivery of modern, high quality health services for the people of Grampian and the north of Scotland for many years to come.”