The extensive work. if approved by Tynwald members, will mean delays for motorists for over a year as the route, the main road from the west into the capital, is put back into shape.
However there will be a bonus for those on two wheels.
Part of the old road will be recycled and used to give the old railway line from Douglas to Peel a better surface.
Director of Highways Richard Pearson:
Voters go to the polls for Manx General Election
82 candidates seeking House of Keys position
Upgraded CCTV for Ramsey to be funded by criminal cash
Authority believes it will help town 'stay ahead of the curve'
Public counters closed due to staff shortages
Passport, immigration and nationality services affected
Church service wants people to think more about impact of disabilities
Promenade Methodist Church event focussing on hearing and sight loss this weekend