Yesterday, Clutha Mayor Bryan Cadogan said he was "thrilled" the NZTA had confirmed it would now provide $687,200 towards the project, which is estimated to cost about $974,000 in total.
"It is fantastic to see common sense has prevailed, especially when you consider the Clydevale Bridge is the only major bridge in the district over the Clutha River capable of handling wide loads, and a new dairy processing plant nearby."
The Clydevale Bridge spans the Clutha River about 22km northwest of Balclutha. The bridge also serves as an alternative route when the Beaumont Bridge, on State Highway 8, is under repair.
The National Land Transport Programme 2012-15, released early last month by the NZTA, listed the bridge's strengthening as a "reserve project", meaning its priority was not high enough to receive funding assistance in the 2012-15 period.
The Clutha District Council submitted more information to the NZTA about the project - in particular its significance in terms of inter-regional freight and transport network security - to see if the priority could be lifted.
Mr Cadogan said the NZTA's acknowledgement of the bridge's importance was "really great news", but the issue of ongoing maintenance of the district's 360 other bridges and bridge culverts remained an unresolved issue.
Council district assets manager Jules Witt said the contract for the bridge strengthening project would be put out to tender before the end of the year, and the work was expected to take place in the first half of 2013.
The council had already budgeted to spend $300,000 during the 2012-13 year.
Alex McLellan, a member of the New Zealand Heavy Haulage Association's board and a local transport operator, said he was very pleased with the NZTA's decision.
"It's really sensational news. Good on the Clutha District Council for pushing the project."
The Clydevale Bridge was extremely important for heavy haulage as restrictions on the Clutha River bridges at Balclutha and Beaumont made the Clydevale Bridge the only option for some haulage, Mr McLellan said.
NZTA southern regional planning and investment manager Bruce Richards said agency staff worked closely with the Clutha District Council to "better define the objectives of the project" so that it met the relevant investment criteria for final approval.
"The strengthening of the bridge to carry high-productivity vehicles will enable more efficient freight movement in the region and beyond, and establish greater transport network resilience."
The decision was a "positive transport outcome" for both the Clutha district and the wider Otago region, Mr Richards said.
The Clutha District Council placed weight restrictions (50% of class 1; 23 tonne maximum) on the bridge in November 2009 after a detailed historical investigation found it was never designed and constructed for class 1 (44 tonne) loads.