The contract to upgrade the Fraser Street/ 15th Avenue intersection is out for tender.
New Zealand Transport Agency's Bay of Plenty State Highway manager says the project, known as Hairini Link Advanced Works, will improve safety for all road users and give immediate relief at the busy intersection.
The project is the second of a four-stage project to future-proof State Highway 2A through the 15th Avenue, Turret Road corridor.

The first stage was installing traffic signals on the Maungatapu and Hairini roundabouts.
The investigation into stages three and four of the upgrade, covering the long-term solution for the rest of the route is currently underway, with options being prepared for public consultation later this year.
Rod says the project will include adding extra lanes to the 15th Avenue, Fraser Street intersection and improving cycling and walking routes in the area.
"Extra lanes on 15th Avenue near Fraser Street will increase the stacking capacity at the intersection so more vehicles will get through the traffic signals on each phase," says Rod.
"Safe waiting places for cyclists, designed to put them in front of the traffic at the signals and give them a head start at light changes, will also be added.
"Two new pedestrian crossing points will be built on 15th Avenue - one will be a signalised pedestrian crossing near Burrows Street and the other a pedestrian refuge near Grace Road."
The tender will run for four weeks. The successful contractor will be appointed in late August and construction will begin soon after. The works are due to be completed by March 2011.