The Governments of Canada and Alberta have announced joint funding of C$1bn ($745.8m) for the conversion of a portion of Highway 16, also known as the Yellowhead Trail, from an expressway into a freeway without traffic signals.

Yellowhead Trail is an important 25km corridor within the City of Edmonton that sees traffic volumes of up to 81,000 vehicles per day, almost 20% of which are transport trucks.

The government anticipates that the project would reduce traffic congestion levels on the Yellowhead Trail for both commercial as well as passenger vehicles by removing intersections, increasing capacity and facilitating a consistent traffic flow and speed.

"The transformation of the Yellowhead Trail in Edmonton means that people will spend less time on the road and more time with their families."

Canadian Minister of Infrastructure and Communities Amarjeet Sohi said: “The Government of Canada recognises how important modern and efficient transportation infrastructure is to growing the middle class and getting Canadians to work on time and back home quickly at the end of a long day.

“The transformation of the Yellowhead Trail in Edmonton means that people will spend less time on the road and more time with their families, and that faster and more reliable transportation will increase the competitiveness of local agriculture and resource industries.”

Upon completion, the conversion would improve driver safety and maximise the flow of traffic along the corridor that serves all four Western provinces as part of the National Highway System.

The project is also expected to speed up the transportation of goods to local, national and international markets, while supporting continued economic growth throughout Western Canada.

With this announcement, the city can move forward with more detailed planning design, including consultation, with construction expected to begin by 2021.

The governments of Canada and Alberta are each contributing up to C$241m ($180m) for this project, while the City of Edmonton will be responsible for all remaining costs.