The New Zealand Transport Agency (NZTA) announced the funding on Thursday - with a design tender expected to be awarded by the end of the year, although construction is still unlikely to begin before 2016.
In Queenstown on Thursday to give a speech to Clutha-Southland National party members on the Government's response to the Christchurch earthquake, Mr Joyce said he welcomed funding for a two-lane bridge over the Kawarau River downstream from the existing bridge on State Highway 6.
"I know the bridge, and I know it's challenging and as the town grows it's important to get it done. We always prefer to have two lanes," Mr Joyce said of the existing New Zealand Historic Places Trust category 1 heritage bridge, built in 1926.
Queenstown Lakes District Council infrastructure services manager Mark Kunath said a submission would be put before the council infrastructure services committee meeting lobbying NZTA to get the project bumped up the state highway classification priority list.
"It's a key route between nationally significant tourist destinations. Both Queenstown and Milford Sound are in the top 10 reasons people come to New Zealand.," Mr Kunath said.
Safety and fire risks were also pressing concerns, especially with burgeoning populations at Kelvin Heights, Jacks Point and the influx of traffic expected with the opening of Hilton's two new hotels at Kawarau Falls Station slated for May.
NZTA southern regional director Jim Harland said the design process for the new bridge involved resource consent applications and "ensuring connected walking and cycling routes around the bridge are catered for".
"Throughout this process the NZTA will be working closely with the Queenstown Lakes District Council on all aspects of the design.
"Completed design will enable the project to be advanced as far as possible, while the timing around the actual construction remains uncertain. The construction of a new bridge is in the agency's current 10-year plan due to be reviewed in the next 12 to 18 months. To get the construction green light, it will have to compete in a very tight funding environment," Mr Harland said.
