Holmes said although it had added time to the contract, it would assist the new housing builds to follow, with all public and private underground infrastructure pre-prepared.
The project had also been hindered by the lack of availability of construction materials, Holmes said.
"Most underground services are now in place and work is beginning on forming the pavement, kerbs and footpaths, and the widening works to Mosston Rd to accommodate the new intersection.
"The underground sewerage tanks [manufactured locally] and pump station are currently being installed at 5m deep using sheet piling and dewatering construction methods."
Work began in November to extend Fitzherbert Ave to Mosston Rd, enabling the residential expansion of Springvale and the industrial development in Mill Rd.
The 600m direct arterial link is intended to improve freight efficiency across Whanganui city and redirect traffic away from narrow residential roads and school routes.
The project includes a right-turn bay approaching from the southern end and a left-turn slip lane from the northern end of Mosston Rd.
Holmes said there was likely to be a ministerial opening on the new road link later in the year, with further details to be confirmed closer to the completion date.