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Dunedin City Council transportation delivery manager Josh von Pein said contractors were now ready to extend the Peninsula Connection along the waterfront at Turnbulls Bay, between Solar Tce and Bacon St, by building 160m of new retaining wall.
But first, a slip next to Solar Tce had to be fixed.
He was aware of large cracks in the ground in the Solar Tce area, but said staff were monitoring them and they would be repaired as part of the development process.
He said the projects were expected to cost less than $2million, and would be completed by February next year.
The work means extra delays for users of Portobello Rd, because traffic will be reduced to one lane until it is completed.
The Peninsula Connection work includes road widening, road raising in places, and pedestrian, cyclist and safety improvements on 26km of road between Portsmouth Dr and the Royal Albatross Centre.
The entire project is expected to cost $64million.
The DCC's share of the project stands at $28million, while the NZ Transport Agency is expected to pay for the rest.