Lanyon Drive represents the main connecting road between Queanbeyan and the ACT, but peak hour congestion has frustrated its 23,000 daily commuters.

Speaking at the project's launch, Chief Minister Jon Stanhope said the upgrades would significantly cut travel times and improve safety. ''It is one of the roads where there are significant problems, particularly during the peaks,'' Mr Stanhope said. ''With the three governments all contributing, we can see a two-lane each way, all the way from Hume out to Queanbeyan.''

Construction on the project is expected to begin in two weeks' time, and has been jointly funded by the ACT, NSW and Federal Governments.

The project is likely to take about a year to complete, and as Mr Stanhope admits, the construction may cause travellers some stress. ''Always in the interim with road construction there's some frustration,'' he said. ''But at the end of the day there's a pot of gold under the rainbow, and people, I'm sure, are prepared to wait for that, now having waited so long.''

The ACT Government contributed $3.5 million to the project, the NSW Government $8 million and the Federal Government $7.5 million.

The Federal Government made its commitment while in Opposition, and was criticised for using the project to try to attract a swing in the marginal seat of Eden-Monaro.

But speaking at the project's launch federal parliamentary secretary for Infrastructure and Transport Maxine McKew said the project was always designed with the purpose of creating jobs and supporting economic efficiency.

Federal Member for Eden-Monaro Mike Kelly said, ''This is such a critical piece of infrastructure for our town. It's a key artery, and we have interdependent economies and social and economic situations in this region, and this is a good recognition of that fact.''

The project includes cycle lanes.