NZ Transport Agency Coastal Otago senior network manager Chris Harris said the section of highway between Redcastle Rd and Virgil St had reached the end of its life.
"It is being renewed with structural asphalt, at a cost of around $1.8million, as part of the standard maintenance and renewals programme our highway teams do on a continuous basis," Mr Harris said.
Stage one of the project started last month, and involved renewing the concrete kerb crossings to many residential properties, which had been prone to blockages.
Surfacing repairs — stage two — started this week. Most of the work is being carried out between 7pm and 7am, and stop-go traffic management is in place during those hours.
"We are anticipating a three-week programme, which is predominantly night works, with a milling crew and asphalt paving crew working together to excavate existing surface and replace with new," Coastal Otago maintenance contract manager Rochelle Leach said.
The transport agency thanked Oamaru residents who lived in the Redcastle Rd to Virgil St area and road users for their patience while the work was carried out.
The work is expected to take until the end of the month to complete.
