Leicestershire County Council has appointed Ringway Infrastructure Services to build Loughborough’s new inner relief road and pedestrianise Swan Street in the town centre.
Ringway previously worked on the Loughborough Eastern Gateway project, improving the area around town’s railway station.
The next step is for Central Government to release £15m which is earmarked for the scheme. This should happen in the spring.
Subject to this, work on the relief road will be able to start, with through traffic transferring to it by spring 2014.
Work to pedestrianise the town centre is anticipated to begin next year and be completed by 2015.
Lesley Pendleton, County Council Cabinet Member for Environment and Transport, said: “We are delighted to appoint Ringway Infrastructure Services as the contractor for this ambitious and long awaited scheme which will help boost Loughborough's economy, spark regeneration and improve safety.
“They did a fantastic job on the Eastern Gateway and we are looking forward to working with them again this on this project.
Kevin Graham, Divisional Director said: “After the success of the Eastern Gateway project this is an excellent opportunity for Ringway to further enhance the local economy and make the town centre a safer place for shoppers and commuters. We look forward to starting work and interacting with the local community to deliver the scheme on time with minimal disturbance.”