The government on Wednesday signed a contract with China Harbour Engineering Company (CHEC) for the construction of the Montego Bay Perimeter Road project.
The contract is valued at more than US$274 million.
The highway will bypass the congested urban centre of Montego Bay.
The government-funded project will comprise the Montego Bay Perimeter Road, Barnett Street/West Green Avenue Road Rehabilitation, Long Hill Bypass, as well as a comprehensive drainage study of the Montego Bay Bypass.
It was announced earlier this year that CHEC would be engaged through direct contracting to carry out the project.
The decision was criticised by anti-corruption watchdog National Integrity Action (NIA), which raised concern that corruption could creep into the project.
A statement from the Office of the Prime Minister said the National Road Operating Company (NROC) will oversee the project.
Under the contract with CHEC, Jamaican labourers are guaranteed employment, with a minimum of 90 per cent to be used for unskilled construction work and a minimum of 50 per cent for technical works.
CHEC has also agreed to work in collaboration with the HEART/NSTA Trust, to develop and implement a training programme for the transfer of knowledge and technology.