Transport Scotland has announced Balfour Beatty Civil Engineering and Farrans Construction as the two shortlisted bidders for delivering the A90/A96 Haudagain Improvement project in Aberdeen.

In the next stage of procurement, the two companies will enter a period of competitive dialogue.

The contract for delivering the key improvements for the project is expected to be worth £18m.

As part of the project, around 500m of new dual carriageway will be constructed to connect the A90 North Anderson Drive and the A96 Auchmill Road.

Upon completion, the improvements are set to minimise congestion and improve journey time, while bringing about road safety improvements. Furthermore, the project will enable new pedestrian and cycling routes through the local area.

“Today’s announcement is a further sign of this Scottish Government’s commitment to improving the roads in the north east of Scotland.”

Scotland Transport and Islands Minister Humza Yousaf said: “Today’s announcement is a further sign of this Scottish Government’s commitment to improving the roads in the north east of Scotland.

“Not only have we reached this key milestone in the procurement today, but we are also progressing opportunities to undertake some work in advance of the main construction.

“This would enable the main construction contractor to hit the ground running later in the year.

“Alongside benefits from the AWPR, the A90/A96 Haudagain Improvement Project will boost the local economy and bring much needed journey time benefits for road users and communities in the north east.”

After completion of the Aberdeen Western Peripheral Route / Balmedie to Tipperty, traffic in the streets of Aberdeen will be reduced and air-quality would be improved for around 75,000 houses.