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The work will enable residents in the area to safely access the existing cycle path.
NZ Transport Agency senior project manager Jason Forbes said the works on the road were part of the wider SH88 safety improvements project and would create a safer, more formal access to the existing path.
"We are reclaiming land into the lagoon to provide the width to extend the path from the existing access, back to the Finch St intersection."
The Dunedin-bound lane of the road would be moved towards the lagoon, providing space for a right turn bay into Finch St and a "pedestrian refuge", or crossing island, in the middle of the road so path users only needed to cross one lane at a time.
The Burkes Lagoon project would take at least six months, he said.
The overall safety improvements project was estimated to cost about $30million.