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The 6.6km scheme will provide an all purpose dual carriageway and work is expected to commence later this month, running for a period of approximately 18 months.
Announcing the contract award, Roads Minister Conor Murphy highlighted the importance of this construction work
"It is an important step forward for the people of the northwest, that the construction work to improve this important road connecting Derry with Belfast via Coleraine is to begin.
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"The provision of a new all purpose dual carriageway will help to ease congestion, resulting in a safer, faster and more attractive route for traffic on the A2," he said.
"The improvement of this road to Dual Carriageway standard is a further example of my commitment to improving infrastructure in Derry and the northwest, in line with the Executive’s priorities, to allow this region to maximise and realise its full economic potential," said the Minister.
He said, in the current economic climate, the commencement of this construction contract will be "welcome news".
The scheme is being partly funded through a contribution of £4.5m from the Integrated Development Fund (IDF).
Ilex the urban regeneration company for the Derry City Council area is the co-ordinating body for the Integrated Development Fund.
The new road will include three new roundabouts located at the heavily trafficked intersections at Campsey, Broadbridge and the City of Derry Airport.
(PR/BMcc)
