A Dh500 million ($136.1 million) contract for the initial construction of Dubai’s canal project has been awarded by UAE’s Road and Transport Authority (RTA), said a report.

The project will link Dubai Creek with the Arabian Gulf by extending the canal to pass under Sheikh Zayed Road, across Al Safa Park, Jumeirah 2 and up to near the southern part of Jumeirah Beach Park, said the 7 Days in Dubai report.

"Phase I of the project has been awarded to the Turkish Jonal Company in a Dh500 million contract," Mattar Al Tayer, RTA chairman and executive director was quoted as saying.

“The project will comprise the construction of a bridge across the Sheikh Zayed Road passing above the waterway - enabling 'free navigation 24/7'.”

Traffic diversion plans were in place to halt traffic on the 800-metre long sector of the Sheikh Zayed Road which will be impacted by the project, he said.