Mining and construction company Macmahon Holdings has announced that the joint venture between its subsidiary, Macmahon, and Thiess has been selected to upgrade a section of Pacific Highway between Frederickton and Eungai in Australia.

Engineering and services provider Thiess, which owns 60% of the JV, said that the contract will be signed in December 2012, with the value estimated at A$450m ($467m).

Expected to commence in mid-2013, the new project will be financed on a 50-50 basis by both the federal and New South Wales governments.

Works under the project will involve construction of a 25.8km, four-lane divided carriageway between the Frederickton Interchange and Eungai.

"The new project will be financed on a 50-50 basis by both the federal and New South Wales governments."

The contract is a part of the ongoing upgrade and full duplication of the Pacific Highwa, which is considered to be the most expensive and complex road project ever carried out in Australia with an investment of around A$762m ($790m).

Once completed, the new section will connect to the Kempsey Bypass, which is presently under construction.

New South Wales Roads and Ports Minister Duncan Gay said that the Frederickton to Eungai upgrade will lessen commute times.

"The project will also build a major new interchange at Stuarts Point Road, install additional rest areas on both sides of the Highway south of Barraganyatti near Cooks Lane, and ensure local farmers can move equipment and livestock into and out of their properties," Gay added.

Investigations for the project started in 2001 and geotechnical works commenced in July 2011. The project is expected to be finished in 2016.