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:
Hospice redundancies decision "tough to make but the right thing to do", says CEO
Charity boss outlines financial difficulties amid calls for government support
Final round of bus strike action gets underway
Drivers balloted as weekend walkout begins
Price of oil and fuel on Island expected to rise 'significantly'
Supplies are said to be 'stable'
Mannin Music says concerns about beach stage only raised earlier this week
Laura and David Rowles have until 2 April to apply for necessary licenses