The phase three development was, said Professor David Gray, college director, "absolutely crucial", especially in the current economic conditions.
"Shetland needs to ensure that its population have the ability and opportunity to be educated in the islands rather than having to leave, as many never return," he said, "and to obtain the skills necessary to meet needs in the coming years from industries such as renewable energy, oilfield decommissioning, construction, creative industries and tourism," he added.
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The extension was approved by the full council 18 months ago and has since been under review in order to identify possible savings in running costs. Student numbers at the college have grown by over 1000 in the year to 2010/11 and have grown consistently since 2006.
Accommodation has had to be pressed into service at the NAFC Marine Centre, Train Shetland, the Anderson High School and the Islesburgh Community Centre to meet the demand.
Of the £4,622,000 cost, European Regional Development Fund will contribute £1,809,000. The funding package also includes £2,013,000 from Shetland Islands Council, £500,000 from the Scottish Funding Council and £300,000 from Shetland College itself.
"The decision to go ahead with this extension was taken 18 months ago by the full council" said Chair of the College Board Allan Wishart, "and despite, indeed because of the difficult economic conditions we face, it is essential that we maintain that commitment to the educational future of Shetland.
"This extension is a crucial investment in our economic future, one that must go ahead immediately to take advantage of European funding and I congratulate Professor Gray and his team on identifying ways to save money in running costs. The responsible and wise decision is to build this much needed extension."
(GK/DW)
