This grant offer was still being finalised when the federal goverment entered caretaker mode in April, holding up the funds until after the May 18 election.

The council's chief executive Craig Niemann said the agreement had now been sent to the city to be formally executed.

"We're very confident the funds will be flowing through very soon," he said.

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It was pleasing the government had acted so quickly to sign the agreement, he said.

Mr Niemann said the delay had not held up the project, nor meant paying contractors late.

The formal agreement, which will lead to the final installment of funding, will allow the council to officially deliver the agreement for Dai Gum Loong, Mr Niemann said.

"In terms of the cash flow we've been able to pay all the bills, so it's really paying us back now of any money that was paid when we paid the accounts prior to Easter," Mr Niemann said.

"There's a few final payments to sort out still."

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Mr Niemann said the council had always been sure that the federal government would honour its funding commitment.

"We were always very confident that it would be funded, it was just that we got caught up in time," Mr Niemann said.

Mr Niemann said getting a new dragon for Bendigo had been a good move forward.

"The visual of Dai Gum Loong and Loong and Sun Loong and Yar Loong at Easter reinforced the importance of getting a new dragon and how great an event and spectacle that was," he said.

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