Under the £800m deal, Vinci Ringway will look after the island’s highways, footpaths and cycleways for 25 years.
Starting in April 2013, £20m will be spent annually upgrading roads for the first seven years - the core investment period. The council described it as the largest engineering project ever undertaken on the island.
The CCTV network will also be maintained and improved as will the street-lighting network with the installation of low-energy LED bulbs.
The project also involves university bursaries for future civil engineering students, schemes to stabilise highways that suffer ground movement and more than 120 schemes to reduce highways flooding.
Ringway already carries out the council’s winter maintenance contract, so is familiar with the area and th.
Councillor Edward Giles, Isle of Wight Council cabinet member for highways and transport said: “All those who use island roads will, I am sure, appreciate the need for this comprehensive upgrade. We are about to embark on a huge project that will leave the Island with a transport infrastructure of unprecedented quality.”
He added: “This is a once in a lifetime project to give our roads network a complete overhaul and upgrade and to do so in a way that offers the best possible value to council taxpayers.”