Ottawa's share of Regina's big bypass project will be $200 million, the government announced Monday.
The bypass will start at Highway 11 northwest of Regina, then will run to the west and south of the city before reconnecting with Highway 1 on the east edge of the city at Tower Road.
Growing traffic volumes have led to concerns about safety and congestion around Regina.
Once construction starts, the province estimates the project could be completed in four years, although some sections would open earlier.
It's going to be a public-private partnership (or P3), meaning it will be financed with public dollars, but a team of private companies will design, build, finance, operate and maintain the project over a 30-year period.
Although the province says it won't know the full costs until the procurement process is finished, Highways Minister Don McMorris said it would be the biggest transportation infrastructure project in Saskatchewan history.
Officials with the Highways Ministry said if the project was done using the traditional process, instead of a P3, it would cost an estimated $1.2 billion.