Infrastructure and Transportation Minister Steve Ashton says the upgrades will ensure the key highway between Winnipeg and the U.S. border will remain open in most years.
Ashton says the cost includes some changes to waterways that have yet to be finalized.
He says one option on the table is diverting a section of Morris River.
The change will help truckers and others avoid lengthy delays and detours during spring floods.
The highway was closed for 36 days in 2009 and 28 days in 2009.
With the upgrades, the highway will be as flood-protected on the Manitoba side as it is on the U.S. side.