Associate Minister of Transport Craig Foss announced the funding yesterday as part of a $3million investment into improving safety on highways in Southland, the West Coast and Otago.
Most of the work in Otago would be focused on State Highway 6, but improvements would also be made to the Lindis Pass and State Highway 8 near Cromwell.
About $1 million would be spent in each region on improvements such as no-passing lines, keep-left arrows, rest areas, curve sign upgrades and new safety barriers, Mr Foss said.
Work will start next month and it is expected improvements will be finished in April.
Electronic speed indicator signs will be placed at the intersection of State Highways 6 and 8b at Cromwell, and on State Highway 6 at Lake Hayes and Makarora.
Upgrades will be made to the car parking area at the Blue Pools between Makarora and the Haast Pass.
The parking area will be separated from the highway, spaces will be provided for coaches and a highlighted pedestrian area will also be installed.
There will also be 23 new lookout signs installed at 10 lookouts around the region.
Widening work will be carried out on State Highway 8 between Cromwell and Twizel and between Kingston and Haast Pass on State Highway 6.
Five new ice and grit warning signs will also be installed on the Lindis Pass.
"It takes a range of measures to improve safety across all parts of the system — roads and roadsides, speed, vehicles and road use," Mr Foss said in a press release.
The improvements were part of the visiting drivers project’s $15 million road safety engineering programme announced in October.