Work has begun on the reconstruction of Willaura-Wickliffe Road, with the first section of upgrades to run from Bald Hill Road to the north of Golf Links Road.
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The project will include pavement rehabilitation, the replacement of the existing culverts, and improved drainage.
Ararat Rural City Council chief executive Dr Tim Harrison said the upgrades will increase the road's durability.
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"Council has identified that due to excessive deformation of the existing road pavement, the road is prone to breaking up into pieces if the road is not reconstructed to handle heavy vehicles," he said.
"Willaura-Wickliffe Road serves as a vital road that carries freight from the farm gate to local grain storage facilities.
"As part of the works kicking off this week, two sections of the road spanning 2.19 km between Bald Hill Road and Back Bolac Road will be reconstructed."
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The project is expected to cost $1,375,000.
The federal government will contribute $455,000 to the project, with Ararat Rural City Council to fund the rest.
The project is due for completion in late May, with road closures and detours to be expected until then.
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