Bega MP Andrew Constance allocated $10 million to the council in June last year, hoping it would give council “more flexibility to invest in other projects”.

The 2.8-kilometre road would direct traffic from Batemans Bay’s southern suburbs to the Princes Highway in a bid to ease congestion in the CBD, particularly during holiday periods.

Council officially started stage one work in March, installing water mains, which is now complete.

However council’s infrastructure director Warren Sharpe said the intersection with the highway was still a problem.

He said Roads and Maritime Services (RMS) had taken on the task of finding a solution to the intersection.

“We really need RMS on board to consider the alignment of the highway and how it’s going to affect their future plans,” Mr Sharpe said.

“Final completion date of that (road) is dependent on Roads and Maritime Services finding a solution and developing a funding model.”

Mr Sharpe said council held a meeting last week with Parliamentary Secretary for the South Coast Gareth Ward to gain “his support to ensure that funding comes to that project”.

When council first questioned whether $10 million was enough for the project, Mr Constance, now NSW Infrastructure Minister, warned it would need to look elsewhere.

“There are other avenues for the council to seek funds. We do not need a gold-plated road,” he said, in July 2014.