The Australian Government has allocated A$174m ($162m) in funding to upgrade the North West Coastal Highway in Western Australia.

The investment is part of the federal government’s $4.7bn infrastructure development initiative to boost productivity and create thousands of new jobs in the country.

Under the upgrade programme, approximately 130km of road between Minilya and Barradale will be widened and overlaid.

Two bridges over low-level floodway crossings at Cave Creek and Goodeman Creek between Barradale and Nanutarra will be also built.

"The works will improve freight efficiency and reduce freight costs by improving access for the local farming area and the growing resources areas in the north-west."

Australian House of Representatives member for the Durack division Melissa Price said: "These works will address the problems associated with predicted traffic growth, including heavy vehicles, and safety concerns, due to the age of the road and its narrow seal width.

"The works will improve freight efficiency and reduce freight costs by improving access for the local farming area and the growing resources areas in the north-west."

Minister for finance Mathias Cormann said: "This section of highway carries 500 vehicles every day with more than 37% being heavy vehicles and this number is expected to grow in the years ahead.

"This project will improve the efficiency and safety of freight transport in north-western Australia, as well as provide improved access for regional communities."

The government’s funds will be sourced from its infrastructure investment programme while the Western Australian Government will fund a total $44m for the project.

Construction works on the North West Coastal Highway and the bridges are expected to begin in October 2014 and early next year, respectively.