The 2021 federal budget delivered $20 million for the revamp of the busy intersection of the Newell and Mitchell highways at West Dubbo.
Total cost of the project is $40 million with the federal and NSW governments equally contributing to it.
The project includes the replacing of the existing roundabout with traffic lights, widening of the intersection, and improvements to pedestrian and cyclist access, and drainage.
Work began in early 2020 and is expected to be completed by late 2021.
It is supporting 90 direct and indirect jobs.
The current intersection is considered "a major pinch point" on the Newell Highway, particularly for heavy vehicles.
The upgraded intersection is expected to improve traffic flow, and reduce congestion and travel times.
It is also designed to improve safety by enabling efficient movement of heavy vehicles and reducing conflict between vehicles, pedestrians and cyclists.
Federal Member for Parkes Mark Coulton announced the inclusion of the $20 million in the budget released on Tuesday night.
It was among five major road infrastructure projects in the Parkes electorate to share in more than $90 million including $32 million for upgrades to Hargraves Lane and Federation Street at Gilgandra.
"The upgrade of Hargraves Lane and Federation Street at Gilgandra will improve supply-chain efficiency during harvest, better connecting the Newell Highway and the Inland Rail to make it a smoother route for freight, ensuring that goods get to ports and markets more quickly," Mr Coulton said.
About $5 million will be spent improving the Pilliga Road.
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