Aviemore-based contractor McGowan Ltd is delivering the scheme on the Pitman Estate's land above the village and work is expected to be completed in five to seven weeks, depending on weather conditions.
McGowan carried out phase 1 of the construction in June and July, which involved the formation of a section of the diversion channel between the Allt Mor and Loch Gynack.
Phase 2 works include the construction of the main offtake weir on the Allt Mor. This will direct a proportion of the flow from the main river, via the diversion channel, into Loch Gynack where it will then be released at a controlled rate back into the River Gynack.
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The scheme is jointly funded evenly between the council and Pitmain Estate, as part of its commitment to reduce flood risk in Kingussie set out in the Local Flood Risk Management Plan for the Findhorn, Nairn and Speyside Local Plan District.
Council Convenor Bill Lobban said: "Flooding in Kingussie due to the Gynack Burn continues to be a serious problem and I am very pleased to see these works are progressing. Once complete the scheme will help to reduce the frequency and severity of flooding and will protect property with the added benefit of increasing energy generation."
Alix Whitaker of Savills, representative for Pitmain Estate, added: "It's pleasing that before winter arrives, the project will begin diverting peak flows to alleviate flooding further downstream in Kingussie, while contributing to the green power output of the Allt Mhor hydropower scheme."
(LM/MH)
