"The Mackays to Peka Peka Expressway to the south has been a major success since it was opened earlier this year and this project will extend it even further north.
"It will mean quicker, safer journeys and be another economic boost for the region.
"The bypass of Otaki will help tackle one of the worst traffic choke points in the lower North Island and take heavy trucks off the main road.
"At the same time, there will be good access for locals and visitors to the shops of Otaki which have become a destination in their own right."
He said it was part of "a massive Government investment into our region, including Transmission Gully and the rollout of ultra-fast broadband".
"It will make our region a more attractive place to visit, work and live.
"Already we are seeing the benefits with commercial real estate in Kapiti and Levin flourishing, creating jobs and opportunities for locals."