The co-funded project, with $60 million from the NSW government and $35.5 million from council, is a major milestone in the long-awaited arterial road upgrade.

The project will deliver a 3.4 kilometre upgrade between Emerald Downs and Greenmeadows Drive. It will include a duplication from two to four travel lanes, upgrading six intersections and access points, and improving pedestrian connectivity.

Member for Port Macquarie Leslie Williams announced the release of $30.8 million of the state government's funding commitment in this week's Budget to get the project moving.

All key decisions will be made by the joint partnership steering committee with representatives from both Transport for NSW and council, chaired by director of infrastructure Dan Bylsma.

From planning through to construction, the project is anticipated to be delivered over the next three years.

On March, council resolved to borrow a $25 million shortfall to progress the Ocean Drive duplication road project to construction tender and protect the $60 million state government funding agreement.

The state government's funding commitment is capped at $60 million, made up of a $10 million special grant following an election commitment in 2011 and a further $50 million announced before the 2019 election.

Council CEO Dr Clare Allen said Ocean Drive is part of council's integrated road network strategy for managing future growth and reducing congestion.

"We will work with the state government to ensure that this project delivers solid outcomes for the community," Dr Allen said.

Member for Port Macquarie, Leslie Williams said the state government remains committed to the upgrade.

"Motorists using this major arterial road often experience congestion and it is important that as our population increases we invest in critical road improvements," Mrs Williams said.

"I will continue to work closely with council and Transport for NSW to ensure we see work progress as soon as possible."

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