A cheaper overhaul of State Highway 1, between the Oval and Lookout Point at Dunedin's southern entrance, is being promoted by the New Zealand Transport Agency.
Otago regional director Bruce Richards presented the $33.3 million option 4a to yesterday's meeting of the Otago regional transport committee.
The previous 3b option was estimated to cost $50 million.
The major difference between the two options is the type of bridge over State Highway 1 at Lookout Point.
The expensive option provided for cars.
The new, cheaper option has only a foot and cycle bridge.
The other main difference is a reduction in the widening of the highway on the Caversham hill, although a service lane would still be provided for residents and the speed limit would still rise to 60kmh.
Mr Richards said it would continue to be possible to drive across the Lookout Point intersection, between Mornington Rd and Riselaw Rd, but to improve safety, vehicles would not be able to turn right from either Mornington Rd or Riselaw Rd.
The new option would include making the highway four lanes from the Oval to Barnes Dr and provide separate turning lanes to improve safety at the Barnes Dr intersection.
Mr Richards believed a start could be made "virtually straight away".
The more expensive plan envisaged a two-part project with all the funding coming from regional funds - provided by a petrol tax for projects of regional importance.
Mr Richards told the committee that he would be suggesting to his board half the funding for the new option should come from national funds because of the economic advantages to the country's economy.
The recently announced government policy statement on land transport funding gives priority to work that increases economic productivity and growth.
"This Government wants us to get on and get things done; stimulate the local economy with a bit of work. So we can do that," Mr Richards said.
Dunedin deputy mayor Syd Brown said the option was considered by a council working party, which gave its support, subject to public consultation.
Mr Brown said the consultation would deal with the issues of "community connectivity and emergency services".
The expected costs are $1.6 million for design, $15.5 million for expanding to four lanes and $16.2 million for the Barnes Dr to Lookout Pt section.
The committee has included the new option in its programme to go to the agency board in August.
