Upgrades for stage 3 of the Harbour Arterial Improvement Project will take six months and is budgeted to cost $2.8 million, including 51% funding from New Zealand Transport Agency Waka Kotahi.
In a statement, Dunedin City Council transport group manager Jeanine Benson said the goal was to make the harbour arterial the preferred route for vehicles, especially heavy vehicles.
It is expected to reduce traffic flow through the centre city during construction of the new hospital.
Stage 3 includes removing all 50 on-road carparks in Strathallan St to allow for dual-approach lanes, making the eastern end of the street two-lane left-turn only and adding a pedestrian refuge.
A new roundabout at the intersection of Otaki and Orari Sts will be built to improve traffic flow, sightlines and access.
"We understand that removing parking may inconvenience some, but this is necessary to ease congestion and to improve traffic flow and safety," Ms Benson said.
The council initially said 20 carparks would be removed, but, following questions from the Otago Daily Times, confirmed 50 carparks would go and apologised for any confusion.
