Work will get underway to build a state-of-the-art new hospital on Orkney within weeks.
The project has reached financial close after an agreement was reached between NHS Orkney and contractor Robertson Capital Projects.
It means work will get underway within weeks.
The new facility will be built in the outskirts of Kirkwall and will replace the town’s existing Balfour Hospital.
It will also include two GP practices and the islands’ public dental service.
NHS Orkney chief executive Cathie Cowan said: “This new facility is part of a significant investment programme in healthcare aimed at providing access to more clinical services in Orkney.
“The Robertson Group have demonstrated to date they have the credentials to be a great partner and I look forward to working with them to deliver an outstanding facility for the people of Orkney.”
The major project has the backing of the Scottish Government and the Scottish Futures Trust, both of which have invested in the hospital.
Scottish Government Health Secretary Shona Robison said: “I’m delighted that NHS Orkney is progressing well on this project. Our investment will not only make a huge difference to delivering excellent patient care but should bring economic benefits to the community too”
NHS Orkney chairman Ian Kinniburgh added: “This is a very important step forward for the people of Orkney who can now look forward with confidence to construction work beginning on site.
“Whilst this stage has taken a little longer to finalise than we would have hoped it was absolutely essential for all parties that it was right.
“All partners to this agreement should be congratulated for their efforts in ensuring the Orkney community gets the new hospital it deserves.”
The project is the largest ever undertaken by the island health board.
It is hoped that the new facility will ease the dependence on sending patients to the Scottish mainland for treatment.
It will include the relocated Skerryvore and Heilendi GP practices, as well as King Street dental services.
Neil McCormick, managing director of Robertson Capital Projects, said: “We would like to thank NHS Orkney for the significant effort and leadership they have demonstrated in driving forward this unique project and look forward to progressing site based operations in the immediate future.”