The project was retendered after previous winner Morgan Sindall failed a year ago to agree a final price on the project originally budgeted at £65m.
Despite several challenges with rising costs of materials, the County Council, City Council and Government have remained committed to the project.
The Department for Levelling Up, Housing and Communities have now confirmed they will provide £212m funding for the total scheme cost, subject to finalising the legal agreements.
This is in addition to the combined contributions from Cumbria County Council and Carlisle City Council of £13.8m which will be sourced from developer contributions as homes are built.
The 8km road will connect Junction 42 of the M6 with the A595 at Newby West and is vital for the economic growth of Carlisle and to deliver the St. Cuthbert’s Garden Village that will deliver 10,000 new homes over the next 30 years.
Main construction works are due to start on site in June, following a few months of mobilisation, during which activity across the site will increase.
Construction is anticipated to take at least two years with the road open to the public in the Summer of 2025.
The council received planning consent for the road in October 2020 following a period of extensive public consultation and has worked closely with landowners and statutory stakeholders to minimise the impact of the scheme on their land.