Transport Minister Iain Gray announced the preferred site and opened the �70m project to bids from construction companies.

The preferred route is through the former Kincardine Power Station and will start from Bowtrees roundabout at the end of the M876.

It is hoped construction work will begin in the summer of 2003.

The new bridge will be sited upstream of the existing Kincardine Bridge and will carry traffic to and from Alloa and the west.

This bridge will radically transform transport links in the Forth Valley and central Scotland Iain Gray

The old bridge will be upgraded, with new link roads and will carry traffic to the east.

The Kincardine Bridge is a notorious bottleneck and the village suffers from severe congestion.

Mr Gray said the new bridge would boost transport links across the Forth Valley and central Scotland.

He said he believed it would encourage housing and business to move into the area and bring substantial economic benefits.

'Relieve congestion'

He said: "This bridge will radically transform transport links in the Forth Valley and central Scotland.

"As a result bring substantial benefits to the local communities and to the local economy.

"This twin bridge strategy will relieve congestion, divert heavy vehicles from the village of Kincardine but avoid damage to the internationally important bird feeding grounds on the Estuary."

Local people would welcome the new bridge, the minister added.

Name of bridge

Charlene O'Connor, Scottish Enterprise chief executive, said the bridge was "excellent news" for central Scotland.

She said: "The proposed route for a new bridge at Kincardine will be a welcome addition to the excellent transport infrastructure we already have in Forth Valley and I am confident it will bring significant economic benefits to the area."

Contractors will be invited to prepare bids for the �71m project by 2005, with the new bridge expected to open to traffic in 2008.

Councils, local communities and MSPs are being consulted regarding the name of the new bridge.