"Hawke's Bay is a thriving local economy, and supporting regional economic development through investing in projects like these is a key for the Government."
The 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 launched in July 2016.
The work is expected to improve safety at the intersection, which is one of the North Island's highest-risk intersections.
"There have been 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," NZ Transport Agency highway manager Wayne Oldfield said.
Due to the work being carried out in an environmentally sensitive area, adjacent to the Ahuriri Estuary , Mr Oldfield said the transport team had worked hard to ensure there was minimal impact on local plant, bird and aquatic life.
The project will be built by Higgins Construction and is scheduled for completion in June 2018.