The investment was part of Waka Kotahi's Road to Zero program.
"Road to Zero sets us on a path to achieve Vision Zero, an Aotearoa New Zealand where no one is killed or seriously injured on our roads. One of the key focus areas of this strategy is improving safety along high-risk sections of road where deaths and serious injuries occur."
Between 2016 and 2020, five people lost their lives or were seriously injured at this intersection. Most of the crashes were caused by vehicles turning right, cars travelling too fast and poor visibility.
"A new roundabout at the SH30/SH33 intersection and right-turn bay into Rangiteaorere Road will save lives," Wilton said.
"People on bikes will also benefit from these improvements, making it safer so they don't have to navigate a busy roundabout.
"Cyclists heading north will be able to safely bypass the intersection by using a cycle path along Rangiteaorere Rd. Meanwhile, reduced vehicle speeds and road shoulders will also make it safer for cyclists coming from the other directions."
Waka Kotahi NZTA said it had worked closely with representatives from Ngāti Rangiteaorere, Ngāti Tuteniu, Uenukukōpako and Rotorua Lakes Council throughout the design process, and spoken with residents affected by this project.
Construction is expected to start in mid-year and is scheduled to be completed by early next year.