The government says the project will reduce traffic congestion and travel time between Hubbards and Tantallon.
The province says the federal government will contribute up to $6.8 million, while the province will pay roughly $9.3 million.
The project includes a bridge over Highway 103, four ramps forming an interchange and a 1.6-kilometre connector road from Highway 103 to Trunk 3.
It also includes a roundabout at Trunk 3 and a bridge over Kieley Brook.
Construction will start in late summer or early fall and take roughly a year to complete.