The Andrews Labor Government has come to the party for the McKoy Street intersection upgrade which will see the elimination of the 80km/h speed restriction west of Wodonga with work starting on a likely flyover within 18 months.
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In a major breakthrough, the Victorian government's confirmed commitment as a funding partner can kick-start planning works for the major project.
An initial $3.5 million from the $64 million promised by the Coalition will be used on the planning study.
The funding for the planning study will enable the Victorian government to secure necessary environmental approvals and land acquisition for the intersection with the Hume Freeway.
The state government contribution could be up to $16 million, but may come in under that amount.
"This upgrade will increase efficiency and productivity to enhance the freight supply chain, which is so important for the locals who use this intersection every day," Victorian Transport Infrastructure Minister Jacinta Allan said.
"The government is continuing to invest in job-creating, economy-stimulating infrastructure projects, with our $100 billion pipeline of investment crucial to building a bridge to recovery on the other side of the COVID-19 pandemic," Federal Infrastructure Minister Michael McCormack said.
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Member for Benambra Bill Tilley, who has long campaigned to fix the intersection, said it was a major milestone in the project.
"This is a win for the mums and dads, businesses and the trucking industry who were rightly outraged at this Mickey Mouse roundabout solution," he said.
"This is also a win for having faith in the process of government.
"This funding came about as a result of the Liberal Nationals success in the federal election and as result of consultation with my office and since then we have had to put up with people from local committees spreading all sorts of rumours with little or no knowledge of what is going on."
Traffic conditions at the intersection were changed two years ago when a nearby service station opened.
But the configuration of turning lanes in the freeway median strip sparked community and nearby business outrage.
An estimated 300 trucks use the existing intersection each day.
Victorian Regional Development Minister Jaclyn Symes said: "This project shows how governments working together can deliver important major infrastructure projects that support our supply chains, create local jobs and help regional communities to be connected".
Victorian Liberal Senator Jane Hume agreed.
"The Victorian and Federal Governments coming together to get this project moving is testament to its importance not only to Wodonga, but the nation," she said.
"With local transport businesses expanding and more residents passing through the intersection as Wodonga grows, it is imperative we get started on the permanent fix to remedy the 'band-aid' roundabout and 80km/h zone currently in place.
As one of the biggest infrastructure projects in the North East, today's news is another example of the Morrison Government keeping our promises to the people of Indi."
