A Honolulu-based defense contractor will build the first phase of the Ane Keohokalole Highway at Kailua, Kona.

County officials say Nan Inc. submitted the low bid of $29.9 million for the work. Four companies bid on the project, with the highest bid coming in at $35 million.

Public Works Director Warren Lee says a notice to proceed is expected to be issued to by mid-March. Shortly after that, a ground-breaking ceremony is to be held.

The project includes building a two-lane, limited-access roadway that will include bike lanes, sidewalks and a multipurpose path. Work is expected to be finished in five years.

Nan has been involved in other local projects, including the recent renovation of the County Building in Hilo.