The federal government announced Tuesday it will contribute $150 million to help twin a 146-kilometre stretch of highway between Edmonton and Fort McMurray.

Highway 63 has seen a growing number of fatal crashes as traffic has increased with the development of the oilsands.

The federal contribution will add to $530 million in provincial funds announced earlier this year. The two levels of government will split the $320 million tab to twin the route from Highway 55 to north of Mariana Lake. Alberta will pay about $360 million to upgrade Highway 63 the rest of the way to Fort McMurray.

The project will make the highway safer and benefit the community, Lawrence Cannon, the federal transport minister said in Fort McMurray.

"It will contribute to the economic growth of the region by facilitating transport to Fort McMurray, by creating jobs … in the construction sector and by making it easier and safer for tourists and Albertans alike to travel in this region," he said.

The upgrade to Highway 63 includes a wide median between lanes of traffic, upgraded intersections and paved shoulders to handle oversized loads.

No timeline has been given for completion of the project but work has started in some areas north of Highway 881. 

Oilsands development has added intense pressure to infrastructure needs around Fort McMurray.