Around 600 direct jobs will be on offer during construction, said Ferrovial.
The bypass is expected to be open to traffic from late 2026.
Major construction is set to begin early next year on the project, which will upgrade about 14km of the Pacific Highway at Coffs Harbour. Four lanes of divided motorway will bypass the Coffs Harbour central business district (CBD), taking thousands of vehicles out of the centre of town and saving motorists time by avoiding up to 12 sets of traffic lights.
The project is jointly funded by the Australian and NSW governments on an 80:20 basis.
Federal infrastructure, transport, regional development and local government minister Catherine King said: “The Australian Government is partnering with states and territories across the country to deliver the projects that matter. Not only will this project deliver local jobs in construction, but it will deliver a safer, faster commute to locals, as well as boosting flood resilience.
“Importantly, by getting thousands of vehicles out of the middle of the CBD it will give that part of Coffs Harbour back to the local community. I look forward to seeing major works getting underway.”
NSW deputy premier Paul Toole: “This is a landmark day for Coffs Harbour that locks in who will build the biggest infrastructure project in the town’s history.
“The project will be delivered using a single design and construct contract to ensure innovation, efficiency and value for money in bringing the plan for this bypass to life.”
“We know how important the three tunnels are to the community’s vision for their bypass – and under the planning approvals now in place, they can be assured that’s exactly what they will get.”
“Everything is now set to go - early works are on schedule and major construction is on track to fire up at the start of next year.”