Mr Richards confirmed yesterday the agency's board in Wellington had approved $6.6 million for property purchase and design of the upgrade of the Southern Motorway from Andersons Bay Rd to Lookout Point.
Mr Richards said he would still have to go back to the board next year for approval of the money for construction, but he hoped work would begin in the 2010-11 year.
"It's fair to say that some work will be done. They still haven't decided how much will be done, but we've been given a good nod, if you like."
The proposal put to the board by the Otago Land Transport Committee in June was for a $33.3 million upgrade that would include the four-laning of the highway, between Andersons Bay Rd and Sydney St, and some improvements at Lookout Point but including a pedestrian overbridge, rather than a more expensive vehicle overbridge.
The committee divided the proposal into two parts, giving priority to the $15 million four-laning because it better fitted the Government's focus on obtaining economic benefits from roading projects.
Dunedin deputy mayor Syd Brown said the Government had "signalled very clearly" that funding for regional projects had to be used or lost.
"We are fortunate that we have got this project scoped up and ready to go and it's not reliant on resource consents, with a lot of time delays, because those time delays could jeopardise the project."
It was pleasing to see Dunedin get the funding, he said.
"Apart from a major investment in a highway project in Christchurch, it's the only project of any significance in the South Island that's been approved, so it does give us some status in regards to the importance placed on the roading structure through our city," Mr Brown said.
Mr Richards said "quite a bit" of planning had already been done, and while work on the new two-lane bridge at the Glen would take time, he believed the design for the whole project could be completed in less than a year.
