The council estimates the entire project will cost $30 to $35 million to complete.

In July, 2021 council submitted two applications to the NSW Government but was unsuccessful in obtaining upwards of $29.3 million worth of Fixing Local Roads grant funding.

Port Macquarie-Hastings chief executive officer Dr Clare Allen said council remained committed to delivering this vital infrastructure upgrade.

"We will continue to actively seek funding opportunities, to support the full delivery of the 13.5km unsealed portion of Lorne Road through round four of the Fixing Local Roads when it is released," she said.

Throughout 2020-2021, council completed a strategic concept design, project cost estimates and construction staging plan for the 13.5km stretch of unsealed Lorne Road between the Tipperary Road and Comboyne Road intersections.

Stage one of the project is underway, with upgrades taking place along a 2km stretch on Lorne Road towards the Koppin Yarratt Road intersection.

The $5 million project will be funded entirely by the Federal Government, with the aim of it being complete by 2023.

Dr Allen said council understood just how important this road was to the community in light of the March floods and corresponding November rain events.

"The vitality of Lorne Road as a link between the rural centres of Kew and Comboyne, cannot be understated," she said.

"This was evidenced by the heavy vehicle use it was forced to endure after Comboyne Road was closed during the March Floods, and again in December due to structural issues below the road surface.

"On any given day, let alone when Comboyne Road was closed, Lorne Road services approximately 250 vehicles that are accessing rural residences and agricultural lots, with a significant heavy vehicle component included among those numbers.

"Simply put, the demand on Lorne Road has become too great, and that is why we are announcing a commitment to deliver on the Federal Government's pledge of $5 million to prioritise stage one of the Lorne Road Upgrade project to upgrade and seal a heavily routed region of road near Comboyne.

"While stage one is being delivered, we will continue to work in partnership with other levels of government to upgrade the remaining unsealed sections of Lorne Road.

"A fully-sealed road would ensure greater safety, and a provide great deal more confidence for motorists - particularly non-4WD vehicles - to travel on."