The government has given the green light for Carillion to start construction of a £96m bypass in Lincoln.
Work will start on the Lincoln Eastern Bypass in January 2017 following the release of £50m by the Department for Transport to fund the scheme, the transport secretary Chris Grayling said.
Funding was provisionally granted by the government in November 2011 but it has taken four years for the council to gain traffic orders to build the scheme.
Carillion was named as the preferred bidder in October.
The contractor was selected over Hochtief, a Sisk / Lagan Construction Group JV and a Graham / Farrans JV.
Carillion will construct a single-carriageway road that will link the A158 Wragby Road roundabout to the A15 at Bracebridge Heath and reduce congestion into Lincoln city centre.
Construction is expected to complete in December 2019.
The transport secretary also revealed how the department will spend the £1.3bn of roads funding announced by chancellor Phillip Hammond in his Autumn Statement last week.
More than £925m will be spent on tackling congestion on the local roads network, £175m will be allocated to improving the country’s most dangerous roads and £220m will go towards upgrades on the strategic road network.
In addition to the funding agreed last week, Mr Grayling also announced that £70m from the Pothole Action Fund would be allocated to local authorities for 2017/18 to fix potholes, while money will also be made available for the development of six other major local roads schemes.
These new projects include a new Tees crossing, the dualling of the A500 in Cheshire, extending the Manchester Metrolink to the airport, a new Coventry South Link Road, and the construction of a Melton Mowbray distributor road.
The government said a number of local transport schemes funded by the Treasury’s Local Growth Fund would be announced in the coming months.