Contractors are invited to register their interest in the design and construction of the first stage of the Barton Highway, with the works to go out to tender in early 2020.
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The first stage will duplicate the highway between the ACT border and Murrumbateman.
Deputy prime minister and minister for infrastructure, transport and regional development Michael McCormack, minister for regional transport and roads Paul Toole and state member for Goulburn Wendy Tuckerman announced the news on Monday.
The federal and state governments have each committed $50 million over four years to upgrade the Barton Highway. The feds have also put up an extra $100 million, subject to the completion of a strategic business case to outline the priorities for road upgrades.
"The Barton Highway is a critical link connecting communities on the Southern Tablelands in NSW and the ACT. This upgrade will significantly improve safety as well as journey reliability, ease congestion and boost freight productivity," Mr McCormack said.
"The Barton Highway upgrade demonstrates our commitment to building for the future. We're investing now so that the community can have confidence that they will have the infrastructure we need to support a growing economy."
Mr Toole called on applicants to look at innovative ways to maximise the length of road that can be duplicated.
"We also want to make sure that there are opportunities for the local workforce from communities along the length of the duplication to participate, to provide employment during tough drought times, so we'll be looking to partners that can provide that," he said.
State Member for Goulburn, Wendy Tuckerman said the Review of Environmental Factors will be finalised in the coming months and planning is also continuing for the duplication of the remaining sections of the Barton Highway, which includes intersection upgrades at Gooda Creek Road and Vallencia Drive.
"Upcoming work also includes the delivery of $3.25 million investment in intelligent transport systems which will improve trip reliability and help better manage and reduce traffic incidents," she said.
"Permanent variable message signs, with fog detection systems, real travel time capabilities and closed circuit television monitoring will be installed at the northern and southern approaches of the Barton Highway."
Mrs Tuckerman also said she would "keep pushing to make sure [the Barton Highway duplication] is completed."