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The plan was welcomed by nearby business owners earlier this year who were concerned about safety at the intersection.
The Dunedin City Council said work would begin early next month.
A crossing point would be installed on each of the roads entering the intersection, and pedestrian refuge islands would be built on Victoria Rd and Bedford St.
The council said the work would ``freshen up the look of the intersection'', with features including surfboard seating, street lighting, a feature wall, timber bollards and new trees.
To minimise disruption for businesses and the community, the project had been delayed to allow Delta to complete work at the same time. Construction was expected to take about two months, and traffic management, including some road closures and detours, would be in place.
Access for residents and businesses would not be affected.