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Work costing just under £2 million to upgrade the problematic Kirk Road in Dunbeg is under way.
The area has been plagued by pot holes and a lack of street lighting and pavements.
The upgrade is part of the Dunbeg Corridor Strategic Masterplan, which plans to build 600 homes between Dunbeg and Ganavan.
The first phase of the revamp, to install a new water main, started on Monday this week.
Work to remove trees to allow for the widening of the road is due to start on Monday February 5.
Traffic management will be in place for the duration of the work and there is the possibility of very short term road closures during the tree felling.
Chairman of Dunbeg Community Council Sean MacIntyre said: ‘It should have been done four years ago before the houses were put in, as was promised. But I am just grateful it’s happening now for the safety of the school children, dog walkers and people with prams.’
He added: ‘The pot holes will be filled in and they are finally getting rid of the chicanes. I think they are going to put in a couple of sleeping policemen.
‘Hopefully it will be finished on time. I know they are three to four weeks late on starting.
‘Hopefully we can also see a better bus service. If the buses can go down to the lab, why can’t Marine Court get a better bus service?’
Kirk Road is the first area to receive money from the Scottish Government’s Housing and Infrastructure Grant. It will be used to widen the road to six metres, with a three-metre footpath and cyclepath on one side and a three-metre verge on the other.
Chairwoman of Oban, Lorn and the Isles Area Committee councillor Elaine Robertson, said: ‘These improvements will make a real difference to the local community and will enable this very important housing development to be progressed.
‘Not only will Kirk Road be widened, but a pavement and street lighting will also be installed. These are things the community have told us are important to them.
‘We want to encourage people to live, work and visit this beautiful area and are committed to economic growth that benefits everyone. During the work, traffic management will be in place and we thank everyone for their patience and understanding while improvements take place.’
As well as the road improvements and 600 homes, the master plan includes retail and commercial development, green spaces, play parks and landscaping.