Launching the first phase of the scheme, Transport Minister Conor Murphy revealed significant funding for the upgrade came from local developers.
The existing Culmore Road / Madam’s Bank Road Roundabout was constructed in the early 1980s in conjunction with the new Foyle Bridge.
Currently traffic experiences extensive delays in both the morning and evening peak periods and it is intended that this major scheme will increase the capacity of this junction.
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Minister Murphy said: "Funding has been secured for the first phase of the scheme, which will include significant contributions from planned housing developments in the area.
"Preparatory work recently commenced on site and the main contract is expected to start in early 2010. Traffic modelling work is ongoing, detail plans are being prepared and negotiations are underway with the various landowners," he explained.
Mr Murphy said he is "committed to reversing decades of under-investment" in the North-West region.
This new junction forms part of the North Western Key Transport Corridor connecting Belfast to Derry City and on to Donegal.
Madam’s Bank Road connects to the recently constructed Skeoge Link which completes the strategic route from Foyle Bridge through to Buncrana Road and on to Donegal.
Culmore Road to the south east is a main traffic corridor to the city centre just over 3km away.
(PR/KMcA)
