Kier has been appointed to deliver the long-awaited £120m replacement for the Princess Alexandra Eye Pavilion in Edinburgh, ending years of uncertainty over the troubled project.

The contractor will act as principal supply chain partner for NHS Lothian on the new specialist facility at the Edinburgh BioQuarter in Little France.

The project will replace the ageing Eye Pavilion, which was first declared “not fit for purpose” in 2014.

Since then the scheme has been hit by funding withdrawals, budget freezes and shifting government priorities, pushing the expected opening back to late 2027 or beyond.

In 2018, Graham was lined up on a £45m contract to deliver the hospital, but the plan stalled as costs escalated.

The new hospital will sit alongside the Royal Infirmary of Edinburgh and the Royal Hospital for Children and Young People, forming part of the capital’s expanding healthcare and research campus.

Kier said it would draw on experience from delivering the NHS Golden Jubilee Eye Hospital and Sunderland Eye Infirmary.

Sean Fenner, Managing Director, Kier Construction North & Scotland, said: “We are proud to be the Principal Supply Chain Partner for NHS Lothian to deliver early construction works at the new Princess Alexandra Eye Pavilion.”