Contractor McGowan Ltd will develop the channel on land within the Pitmain Estate to divert high flows from the Allt Mor into Loch Gynack, where it will then be released at a controlled rate back into the River Gynack.
The diversion of peak flows will contribute to the hydropower scheme and help to alleviate flooding further downstream in Kingussie.
In addition, the council has signed an agreement with Pitmain Estate to jointly fund the scheme, which is being carried out as part of it's commitment to reduce flood risk in Kingussie as set out in the Local Flood Risk Management Plan for the Findhorn, Nairn and Speyside Local Plan District.
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Alix Whitaker of Savills, representative for Pitmain Estate, said: "This is a great public-private partnership and I'm pleased that we can begin work on the scheme in the weeks ahead.
"The project will be good for local flood protection in Kingussie and green energy generation at the Allt Mhor hydro scheme."
Cllr Bill Lobban added: "I am very pleased to see that these works are starting as they are key factors in making the community safer from potential flooding. Hopefully this scheme will not only reduce the misery that flooding causes but have an added economic benefit as well. I look forward to seeing the channels once they are completed."
(LM/MH)
