Work on the motorway from Limassol to Saittas will start in September, the transport ministry announced on Thursday.
The first phase is expected to be completed in 30 months.
On May 11, the tenders review authority gave the green light for phase A1 of the motorway.
The department of public works will proceed with the legal procedure for the assignment of the project and the signing of the deal with the contractor, Cyfield Construction Ltd for €26.12m plus VAT.
Phase A1 is the section from Polemidia to Palodia, from the Palais de Sport to the Palodia exit, and is approximately 3.6 kilometres long.
The project includes a secondary road network of seven kilometres, four roundabouts, and overpass, and underground passage and supporting walls.
Bids were invited on March 14, 2019 and submitted on June 28, 2019.
After their evaluation, the successful bidder was awarded but then an appeal was lodged with the tenders review authority, delaying the signing of the contract and the start of the project.