A major Government transport investment in Rotorua is expected to help ease the city's congestion problems.

Transport Minister Simon Bridges has announced a 24-million dollar roading project, focused on the city's eastern and central corridors.

Rotorua Lakes Council mayor Steve Chadwick said congestion on Te Ngae Road has been a major problem and she will be happy to see it fixed.

She said she hopes the investment will allow the eastern arterial designation to be lifted so local iwi can develop the land.

Bay of Plenty regional councillor Jane Nees said the investment will strengthen the connection between Tauranga and Rotorua cities.