"This road is the main artery to the heart of these communities. Its condition affects people's daily lives - school runs, businesses, freight, rural delivery all rely on this route and have had to absorb the cost of wear and tear on vehicles.
"It's also the main route to Herbertville Beach which is a major holiday destination in the summer."
Having the fourth-largest roading network in New Zealand but a small ratepayer base, the project would have been too much of a stretch without this investment by Central Government, the mayor said.
"This is the communities' lifeline to Dannevirke and its degradation has been hard on them and hard on council staff. Adverse weather events have had a huge impact on this route.
"The plan to upgrade includes the bridges ... it is a well-researched and well-developed plan and will benefit the entire community. Council staff are buzzing with the news and we can't wait to get the work under way."
Shane Jones said the project will also build investment confidence in increased land production and tourism, and underpin sustainable business and job growth in the rural communities the road runs alongside.
As well as its designation as a Heartland Ride as part of the New Zealand Cycle Trail network, Route 52 is increasingly important as a tourist and freight route.
"The long, winding and narrow road is quickly deteriorating as a result of increasing traffic. While improving the resilience of the road, the upgrades are also expected to improve the attractiveness and smoothness for tourist traffic and cyclists," Jones said.
Funding for the project is coming from the $3 billion set aside for infrastructure in the Covid-19 Response and Recovery Fund.
It is estimated that this infrastructure project will create 45 jobs.
"This piece of roading is crucial for this region and this project will provide an economic boost at a time when it is needed, as well as putting people in jobs," Jones said.
Collis said she had been calling Route 52's community advocates sharing the news, and was planning a road trip to the Wimbledon Hotel to raise a glass in celebration.