A Roads and Traffic Authority (RTA) spokesman said four national companies had formed two consortiums to bid for the design and construction of the 25km of dual carriageway and had been invited to submit tenders in August.

The consortiums are a joint venture between Abigroup Contractors Pty Ltd and Thiess Pty Ltd and a joint venture between Leighton Contractors Pty Ltd and Fulton Hogan Pty Ltd.

Their bids will now be analysed and a decision will be announced in the first half of next year

Work on the multi-million dollar upgrade is due to start in the second half of next year.

According to an RTA spokesman, the project is due for completion in late 2013.

Meanwhile, the RTA is confident that all of the Pacific Highway from Sydney to the Queensland border will be dual carriageway by the end of 2016.

An RTA spokesman said once 54km of highway work currently under construction is completed more than half of the 677km stretch of the highway between Hexham and the Tweed will be dual carriageway.

The spokesman said at this stage by mid 2012 all of the highway will be divided four-lane to Port Macquarie.

The spokesman said a substantial start on the stretch from Port Macquarie to Raleigh , including the Macksville and Urunga bypasses, will be underway by the time the Kempsey bypass is completed in mid 2013.

Work on the deviation around Kempsey is due to start early next year.

To the north of Coffs Harbour, work on the Ballina bypass is now well underway and on track for completion in about four years, by which time, according to an RTA spokesman, a further 12km of four-lane divided highway at Glenugie and Devils Pulpit, to the north and south of Grafton, will be well underway, if not completed.