The US territory of Guam, in the west Pacific Ocean, is planning to spend nearly $3.5bn on a complete overhaul of its roads and public transit infrastructure.

The revamped road network will tackle the island nation’s upcoming transport challenges before it gears up for a military build-up by 2014.

The project will be jointly financed by the Federal Highway Administration, Department of Defense and local government, each contributing $1.6bn, $1.5bn, and $260m respectively.

Authorities have replaced the earlier idea to build a new high-capacity north-south road, and started work on improving its roads with a $90m budget, the guampdn website reported.

The Guam Mass Transit Authority has identified $138m for transit improvements from the Federal Transportation Administration and the Guam Government.

Plans are already underway to install public bus infastructure.