Work on the new $5.25 million roundabout at Te Puna is due to start in May and could reduce the number of crashes at the spot by as much as 80per cent.
The NZ Transport Agency yesterday announced the contract had been awarded to Downer.
The two-lane roundabout would replace the Te Puna/ Minden Rd intersection just north of Tauranga.
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Subject to approvals and property purchase, preliminary work was due to start in May and would be split over two construction seasons with work due to be completed by mid-2017. The agency's acting Bay of Plenty highways manager, Chris Young, said the new roundabout would make it safer and easier to travel as traffic volumes increased on State Highway 2.