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VICROADS says it plans to call for tenders for the construction of a roundabout at the Lockwood Crossing at the end of the year.
The announcement was made in January to upgrade the intersection where the Bendigo-Maryborough Road meets the Calder Alternative Highway.
The TAC-funded project is expected to cost about $3 million.
VicRoads regional director Mal Kersting said a design was currently being developed for the roundabout.
He said construction was expected to start early next year.
"The roundabout will help address the needs of safety, mobility and local access at this location," he said.
"VicRoads has previously met with some nearby residents to discuss the intersection and we plan to meet with them again once we have advanced the design."
Meanwhile, VicRoads is undertaking pre-construction activities at the Ravenswood Interchange to help better understand the local ground conditions ahead of major construction works later in the year.
Major construction is planned to begin by the end of 2015, Mr Kersting said.