A $130m project in Western Australia will start in mid-2009 linking the Kwinana Freeway extenstion to Mandurah.

The project is funded equally by the Australian and Western Australian governments.

The 7km long Mandurah Extension road is expected to be open by 2010 and is set to reduce congestion on local roads and travel times as well as improving road safety.

The Federal Transport Department is in talks with the Southern Gateway Alliance comprising of Leighton Contractors, WA Limestone and GHD, to reach a final agreement.