Transport Minister Mark Gosche has welcomed news from Transfund that it is to fund a major rebuild of a notorious stretch of Waikato highway.

At a recent board meeting Transfund approved for a $56 million upgrade of a 12 kilometre stretch State Highway 1 south of Mercer.

"That stretch of highway is notorious and has an unacceptably high accident rate. Making it safer for road users is a now a priority and I welcome Transfund's announcement," said Mr Gosche.

"This is one part of a major series of upgrades that will take place from south of the Bombay Hills through to Cambridge."

"This rebuild is a key way we can make our roads safer for all users."

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