Work to fix what could be "the most dangerous intersection in the country" is due to start in coming weeks.
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Fulton Hogan has been awarded the tender to design and build the $390 million Mt Ousley interchange, which will create a separate southbound lane for heavy vehicles as well as an overpass linking into a new northern entrance to the University of Wollongong.
It will also see an end to vehicles having to turn right across three lanes of oncoming traffic.
"It's a $390 million, four-year project - an infrastructure investment the likes of which we haven't seen along Mt Ousley for many, many years," Illawarra and South Coast Minister Ryan Park said.
"It will ensure that arguably the most dangerous intersection in the country, an intersection that requires people to turn right across a three-lane motorway, is simply avoided."
Mr Park made the announcement of Fulton Hogan as the successful tender at a conference with other Illawarra state Labor MPs Paul Scully and Anna Watson, and federal Cunningham MP Alison Byrnes.
He said early geotechnical work and vegetation clearing will start in the coming weeks with construction expected to begin later in 2024 and take four years to complete.
Mr Park admitted the project would cause some disruption, particularly to residents in Mt Ousley and Keiraville where temporary noise abatement measures will be in place, becoming permanent after the project's completion.
Also, the fact that the motorway will need to remain open while construction occurs was another hurdle to be overcome.
"This is going to be a challenging piece of infrastructure to build and part of the design phase will have a look at how we try and manage that process," Mr Park said.
"We're going to have to carry this work out in a way that continues to see the road open to traffic - that's going to require some patience from people, it's going to require patience from the community.
"We are talking about a challenging project, a difficult project but one we are going to need to do and to get right to make sure that we improve safety we improve accessibility and we also improve efficiency on the road corridor."