"The NSW government announcement of $1.25 million matches the earlier announcement of funding from the Australian government," Cr Davis said.

"This $2.5 million project will be a major boost to a key north-south transport link for Orange residents."

Cr Davis said the tight bend on the existing bridge made it impossible for two heavy vehicles to pass each other.

"The new bridge will be re-aligned to make it simpler for heavy transport to use," Cr Davis said.

"The project is now in its final design stages and negotiations are continuing with John Holland Rail over the details."

Cr Davis said work was expected to begin on the bridge early next year.

The parliamentary secretary for Western NSW Sarah Mitchell said the Orange electorate will receive around $4.3 million in funding for three major local projects as part of round two of the fixing country roads initiative.

The funds are designed to remove 64 freight "pinch points" in regional NSW.

Ms Mitchell said the round two initiative is part of a $50 million investment in the upcoming 2016/17 state budget, on top of the $43 million commitment in round one.

"Successful projects will connect local and regional roads to state highways and key freight hubs, such as silos, sale yards, rail heads, supermarket distribution centres, industrial parks and depots," Ms Mitchell said.

"(Around) 260 million tonnes of freight are moved across regional NSW each year - improving the way we do this is vital.

Other projects to obtain funding in the Calare electorate include upgrades to the Middle Trundle Road in the Parkes Shire and an upgrade of the route between the Newell Highway and the large grain handling facility at Wirrinya.

All fixing country roads funding allocations are determined by a an independent panel which includes Local Government NSW, Livestock and Bulk Carriers Association, NSW Farmers and the NRMA. 

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