The existing public toilet block will be demolished and a three storey building constructed to replace the property which was lost over half a century ago.
Councillor Ron Smith, Executive Member for Planning and Environment, said:
“Reinstating the streetscape in Kelso is considered a key heritage objective and I welcome the appointment of M & J Ballantyne, which will allow the work to start. This project is considered a priority and will bring a range of social and economic benefits to Kelso’s residents, businesses and visitors.”
The new development will provide public toilets as well as bus shelters. A digital Tourist Information Point will be installed near Woodmarket.
It is anticipated that the project will start in May and will take around 40 weeks to complete.
More top news
Police are searching for the owners of two dogs which attacked and injured a terrier, while it was being walked by its 70-year-old owner.
Fraudsters are posing as company bosses to take tens of thousands of pounds from businesses in Dumfries and Galloway.
Dozens of volunteers at the Keswick Mountain Festival have been repairing fells damaged by last December's floods.