Indiana officials have approved a deal with the private company that will finance and build the new section of Interstate 69 between Bloomington and Martinsville.
The 21-mile stretch of the existing Indiana 37 will be used for the I-69 extension.
Private bonds to finance the project are set for to be sold in June and construction is scheduled to start this year.
The new section of I-69 is slated to open by the end of 2016. If the private developer falls short of contract goal the state could reduce the amount paid.