A large piece of public art will be unveiled next to the long-awaited Bowen Place underpass, which the National Capital Authority hopes to have finished by March 2015.
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The large steel sculpture known as Dunstable Reel was created by British sculptor Phillip King and was originally exhibited in 1970 in Scotland.
The piece consists of large pieces of steel, painted in yellow and red, and is 5½ metres by 5½ metres. It will stand beside the lake at a distance viewable from the new pedestrian and cyclist path beneath Bowen Drive.
Acting director of the National Gallery David Perceval said the institution was very excited to see more of its works on display.
"It’ll be a permanent fixture outside which is great, and I think the NCA will have a little viewing platform on top of Kings Avenue bridge," he said.
"It’ll look spectacular."
There are two other versions of the sculpture, one of which is currently in the famous Tate Gallery in London.
Dunstable Reel is in storage at the National Gallery and won't be put in place until construction is completed on the underpass.
The news came as the National Capital Authority announced it had awarded the $8.3 million tender for the underpass to Woden Constructions.
NCA acting chief executive Andrew Smith said he hoped construction would begin in March 2014 and be finished in 12 months.
He said the new underpass would mean people could finally walk around the lake without having to cross a road.
"It really increases public safety and you know how popular the walk to the lake is," he said. "This has been a bugbear for many a year so we’re really pleased to get this done."
Dunstable Reel has been on display before in the National Gallery's sculpture garden, before it was rotated out on advise from the conservation team.
Mr Perceval said the National Capital Authority had requested a piece of public art from the gallery to compliment the new construction.
"The NCA's overarching plan for the parliamentary triangle is to possibly have more of our works on display and this is the first part of this process," Mr Perceval said.
"It’s something we’re definitely excited about."
The sculpture will be maintained by a conservation team from the National Gallery.