As businesses slowly wake from the hibernation imposed by the COVID-19 pandemic, Chief Minister Andrew Barr on Wednesday announced work on the popular precincts would begin in February as part of the city's recovery plan.

Better lighting, footpaths and parking options for cars and bikes, as well as revived landscaping and improved access to public transport, are among the upgrades to be undertaken.

Chief Minister Andrew Barr said the project led by Canberra-based firms SMEC and AECOM would create up to 20 jobs in construction, design and engineering.

"These precincts are older than most other parts of Canberra," he said.

"Braddon has been going through a gradual renewal over 20 years. This takes that to next level."

Mr Barr said designs were currently being created for the broader Dickson and Braddon precincts.

He said the two precincts had a strong history and heritage that the government was seeking to enhance.

"The City Renewal Authority will work with local businesses and the community to minimise the construction impacts while we improve these areas for the benefit of the entire community," Mr Barr said.