The $13 million dollar project is being jointly funded from the National Land Transport Fund, Hawke's Bay Airport and Napier City Council and is part of a $25 million package of road access improvements to Napier Port, announced by the Government as part of the Matariki - Hawke's Bay Economic Development Action Plan, which was launched in July 2016.
NZ Transport Agency highway manager Wayne Oldfield said the work would improve safety at one of the North Island's highest-risk intersections.
"There have been a number of fatal and serious crashes in this area, so the roundabout and improved airport access will provide a safer, more efficient intersection, with better access to both the airport and the Napier Port."
Mr Oldfield said Watchman Rd would become the new way to get to and from the airport, with the existing entrance, which had also become a spot for safety concerns, retained for emergency use only.
"We'll also be linking the project to the existing cycling infrastructure, to ensure the finished project is suitable for all road users."
Mr Oldfield said the major work would be carried out in an environmentally sensitive area with the adjacent Ahuriri Estuary having been designated as a wetland of national significance.
"The team has worked hard with a wide range of stakeholders over the last 18 months to mitigate the effects of construction, and we'll be ensuring the work has a minimal impact on local plant, bird and aquatic life," he said.
The intersection is presently among the top 10 high-risk intersections in New Zealand.
"It has a poor crash record and can be generally confusing for road users."