The contractor will start work this summer on the A1 Coal House to Metro Centre road improvement scheme.
Balfour will widen a 4-mile stretch of dual carriageway to three lanes in both directions and build a new 0.33 mile parallel link road, for north and south-bound traffic, between Lobley Hill and A184 Gateshead Quays junctions.
Announcing the contract deal today, Roads Minister Robert Goodwill said: “Once completed in spring 2016, the A1 improvement to the Western Bypass will not only increase capacity by widening the road north to Metro Centre junction and south to Coal House junction, but also help economic growth in the area.”
Today, the Agency also announced the preferred option for the £100m, A19/A184 Testos junction improvement scheme, south of Newcastle.
Once completed, people using this key route in the north east will benefit from safer journeys, reduced congestion and more reliable journey times.