Tasmanian joint venture, VEC-Shaw, has been announced as the preferred contractor for the Perth Link Roads project.
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Funded through the state and federal governments, the project is the largest part of the Midland Highway upgrade.
It will connect the upgrades between Perth and Breadalbane, and Perth and Symmons Plain.
Federal Infrastructure and Transport Minister Michael McCormack said the project was the final piece of the puzzle.
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“With the completion of the Perth to Breadalbane Duplication, the Perth Link Roads project is the final link in providing dual carriageway from Launceston to the south of Perth,” he said.
“It will divert heavy vehicles and highway traffic around the Perth towncentre, reduce traffic noise and congestion for the Perth community, and improve travel times along the Midland Highway.”
Tasmanian Infrastructure Minister Jeremy Rockliff agreed that the upgrade of the North-South route would carry multiple benefits for the region.
“These works are not only resulting in significant safety increases for all road users, they are providing certainty for our civil construction sector and creating jobs for Tasmanians with numerous flow-on benefits for local businesses.”
"This continued strong investment in our Midland Highway 10-year Action Plan will help us achieve targets to reduce serious injuries on our roads to zero by 2050, and to increase investment in public infrastructure by 20 per cent in the next four years.”
Minister Rockliff said threatened environmental species such as the Green and Gold frog would also be protected with specialised drainage pathways.
Work on the Perth Links Road is due to start in late 2018 and be completed by the end of 2020, subject to the finalisation of the contract.