The Boundary Road extension is expected to be completed in April.
Stage one of the extension between Wheelers Lane and Alexandria Avenue was completed in late 2018. Stage two, currently under construction, is between Alexandria Avenue and Sheraton Road.
When completed, the road will provide connectivity for pedestrians and traffic between Keswick and Southlakes residential estates, as well as providing another route to access St John's College, the Christian School and Skillset Senior College.
Dubbo Regional Council chief executive officer Murray Wood said it was no secret the project had experienced delays.
"A few of these have involved the high voltage solar cables from a nearby solar farm which are encased in thermal concrete making it extremely challenging to work around. Many services have had to cross the mass poured concrete which required coordinating the temporary shutdown of the solar farm for safety reasons," Mr Wood said.
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"Of course like many other projects, COVID-19 did affect the project with the unavailability of contractors and the redeployment of DRC operational staff to the testing and vaccination clinic. There were also significant delays associated with the dedication of the road corridor for the project and the electrical conduits, which could not be installed until the road was formally dedicated, a lengthy process in itself."
However, despite the delays, council says the $8.5 million project is expected to be on budget. Savings have been made where possible.
Council's manager infrastructure strategy and design Chris Godfrey said the road would be worth the wait.
It will not only reduce travel time, it has also been designed to fit in with the future plans for the area.
"When designing this new portion of the road it was very important to include the essential infrastructure that would allow the city to grow in the years to come, without ripping up the road to install the required services at a later date," Mr Godfrey said.
"The extension of Boundary Road now contains all the required underground services for future expansion, both commercially and residentially, including gas, NBN, water, gravity sewer stormwater infrastructure and electricity."
Major works on the road will start on 24 January, primarily at the intersection of Sheraton Road and Boundary Road. It will include the construction of the roundabout in this area, along with the installation of footpaths and street lights.