Construction of a new cycle lane and the installation of traffic lights in the Crawford St area of Dunedin will begin next week.
New Zealand Transport Agency regional director Bruce Richards said the project provided safety benefits for all road users and involved installing traffic signals at the intersection of Jervois and Crawford Sts.
"This part of the project is being carried out in the New Year," Mr Richards said.
Improvements would also be made to the layout of the intersection of Gordon, Police and Rattray Sts, he said.
"There have been 76 crashes on this section of SH1 over the past five years. About half of these were intersection crashes."
Mr Richards said the last of the cycle lanes on SH1 in Dunedin would also be completed as part of the project.
The cycle lane north of Queens Gardens on Cumberland St would be extended so it started at the intersection of the Caversham bypass and Andersons Bay Rd.
Delta Utility Services won the contract and would start the work next week by moving the footpath along the Stewart Reserve opposite Queens Gardens to make room for the new cycle lane.
The project was due for completion by Easter 2010, he said.
