The state government has appointed a contractor for the long-awaited Albion Park Rail bypass.
Kiama MP Gareth Ward said on Wednesday that the joint-venture firm of Hyder and Cardno would work with Roads and Maritime Services to develop a design concept for the road over the next two years as well as work on the environmental impact statement.
"As part of the contract, they will carry out site work and studies including surveys, geotechnical, flooding and traffic investigations," Mr Ward said.
"Other elements will include the development of the concept design of the bypass, including road and bridge design, structural and drainage design and landscaping.
"The environmental impact statement will include assessment of flora and fauna, noise, vibration, air and water quality, visual impacts, socioeconomic effects, flooding, Aboriginal and non-Aboriginal heritage."
The community will also have the chance to comment on the design as it progresses.
"This is a critical step in planning for the future extension of the M1 Princes Motorway to provide a bypass of Albion Park Rail between Yallah and Oak Flats," Mr Ward said.
"The government has allocated $1 million this financial year to progress investigations and planning for a bypass at Albion Park Rail."