The UK Department for Transport (DfT) has approved funding of £487.3m for the upgrade of roads in the Isle of Wight.

The funding, which is a part of the private finance initiative (PFI), will support the county in carrying out major rehabilitation works of its roads, footways, street lighting and other aspects related to the highway roads.

Expected to commence on 1 April 2013, the Highways PFI project, carried out under the name Island Roads, will include management and maintenance of more than 497 miles of highways, 477 miles of footway, over 12,000 street lighting columns and more than 2,000 illuminated street furniture items, over a period of 25 years.

Other works included under the project feature maintenance of cycleway networks, bridges, CCTV, street lighting, car parks, traffic lights and the retention of walls.

The project will stabilise highways that are prone to ground movement, including the Military Road and the Undercliff at Niton.

Transport Minister Norman Baker said that the well-maintained local networks are useful for all road users, including motorists, cyclists, pedestrians and public transport passengers, and are also important for communities and businesses.

"The funding, which is a part of the private finance initiative (PFI), will support the county in carrying out major rehabilitation works of its roads, footways, street lighting and other aspects related to the highway roads."

"The funding this government has agreed will bring better, safer roads and more reliable journeys to the people of the Isle of Wight," Baker said.

A contract between the Isle of Wight Council, Vinci Concessions and their partner Meridiam has been signed to carry out these works over a period of 25 years.

Under the terms of the contract, Vinci through its partner Ringway will start a period of mobilisation before the actual commencement of work in April 2013.

Isle of Wight Council Economy and Environment director Stuart Love said the project will not only improve the island’s roads, but will also bring in opportunities for local businesses.

"It will also leave us with a quality infrastructure that will help us attract new enterprises to the Island," Love said.

PFI is a public-private partnership initiative where public infrastructure projects are funded with private capital.