Wollongong City Council has finally started repairing Mount Keira Road, but is still $1.2 million short to complete the stabilisation project on the tourist drive.
The road was closed near the scout camp access road in late 2012 after a council assessment found rockfalls and landslides posed a risk to public safety.
"Geotechnical works on the upper slope, including extensive rock bolting, meshing, shotcreting and building catch fences for rockfall protection, are well under way," a council spokeswoman said yesterday.
"Following these stabilisation works, the council will reconstruct the road pavement."
The council said the cost of work was likely to top $2.7 million but only $1.5 million had been allocated in the current budget.
"The work on Mount Keira Road is just one example of ageing or failing infrastructure which the council is working to address by securing an additional $21 million per year," the spokeswoman said.
The council has appealed to the federal government to fund the rest of the road through its Resources for Regions program.
Despite the cash shortfall, it was still committed to reopening the route to the public by October this year and would reallocate funds as needed, the council said.
Meantime, falling rocks continue to be a problem on the closed section of the road, with the council posting an image on its Facebook page showing a section of fallen boulders.
Previously, cyclists and bushwalkers lobbied the council to be allowed to use the road while it was shut to traffic, but the council said this was too dangerous.
"We are not aware of any cyclists in the area, and the council is asking all cyclists and pedestrians to avoid the area, as it does pose significant safety risks," the spokeswoman said yesterday.
"There are gates in place at the site to prevent access."