The Provincial Development Unit will contract directly with regional councils for the flood-protection proportion of the "shovel ready" contingency.
Infrastructure Minister Shane Jones said flooding cost regional economies millions of dollars every year.
"On top of that, there is the considerable stress of lost income and the cost of rebuilding and repairing the damage," he said
Jones said the projects proposed for funding include stopbanks and flood-protection works in both Otago and Southland and the Outram flood remediation project.
The money would not only make the regions' residents safer from the impact of flooding, but it would also provide new work opportunities, he said.
"And aside from the benefits of the infrastructure itself, this investment will provide immediate and much-needed jobs during construction for an economy recovering from the impact of Covid-19," he said.
"Most of those jobs will not require extensive training for new workers, so they are good to go."
Possible projects earmarked include:
Southland:
• Boundary Creek stop bank upgrade, SH1, Mataura.
• Gore town stopbank protection - following 2020 floods.
• Mataura town stopbank protection - following recent floods.
• Mataura town stopbank upgrade - critical flood protection following 2020 flood.
• Otepuni stopbank upgrade - critical flood protection for Invercargill City.
• Stead St Pump Station, Stead Street, Invercargill City - replacement major upgrade of old 1950s pump station. Critical flood protection.
• Stead St stopbank upgrade, Invercargill.
• Waiau River flood damage repairs - critical repairs following 2019 flood.
• Waihopai stopbanks upgrade - critical flood protection for Invercargill City.
• Waimumu stopbank upgrade - critical flood protection following 2020 flood.
• Wyndham stopbank upgrade - critical flood protection following 2020 flood.
Otago:
• Outram flood protection - earthworks and culverts construction project to protect the Outram community.
• Riverbank Rd flood protection, Lower Clutha - stabilising of critical flood protection infrastructure for Clutha Delta.
• Upgrade and installation of ORC Flow Management Structures at Robson Lagoon (part of Lake Tuakitoto Wetland), Lower Clutha.
• West Taieri flood protection contour channel upgrade 2820m (stages 5, 7, 8, 9 and 10).