Travel times between Orange, Mudgee and Newcastle could be cut by about an hour with funding announced to build a bridge over the Macquarie River at Dixons Long Point.
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Funding of $16 million was announced for the project, which would also include paving the road, in Tuesday's federal budget.
Member for Calare Andrew Gee said the upgraded road and crossing would better connect Orange and Mudgee.
"The $16 million will deliver a new bridge over the Macquarie River at Dixons Long Point and a fair chunk of the dirt graded and sealed between Orange and Mudgee," he said.
Mr Gee said he was now looking to the state government for extra funding to complete the project.
"Given the NSW government helped to fund the feasibility study, we're obviously looking to partner with it to physically build the road and get this money spent," he said.
"The investment of $16 million is big enough that there can be no turning back with this project now."
Western NSW Business Chamber Regional Manager, Vicki Seccombe, said the chamber had called for the funding.
“We hope the state government can now come to the party with the final $3 million to make this a reality,” she said.
Former Orange City Councillor Martin Gleeson said he was involved in the project to re-open the road with a low-level crossing about 30 years ago after the original crossing had been washed away.
Mr Gleeson said on Wednesday he was delighted it was finally going to be completed.
"It is a very significant achievement. Thirty years ago we opened the road up. We got it done with volunteer labour and donated machinery with the view to it being developed in the future. We led the charge to get it opened up," he said.
Mr Gleeson said it would provide access from Orange to Newcastle and cut congestion for traffic that currently travels across the Blue Mountains and through Sydney to get to Newcastle and the Central Coast.
"That road, opened to the standard the $16 million will bring, cuts 100 kilometres from Orange to Newcastle. It will save what is a good hour," he said.
The federal government also announced $40 million to assess fast rail corridors, including Sydney to Orange and Parkes.
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