Dungog's mayor John Connors said that more funds are needed to replace Clarence Town bridge

Last week the Federal Government confirmed it will provide previously flagged funding towards the cost of a replacement bridge, along with an additional $781,000 to make up for a funding shortfall.

The additional funding takes the total amount of federal money allocated towards the project to $9.5m according to an independent review conducted by the Federal Government but Cr Connors doesn't believe this is enough. He is now lobbying the State Government to chip in.

Funding for the project was in limbo after the Federal Government announced a 90-day infrastructure review which saw a funding freeze on infrastructure projects across Australia including replacement of the Clarence Town bridge.

"In December we submitted a business case to state and federal ministers for additional funding because of the increase in costs that have occurred since the project started. The $781,000 represents half of the additional funding," Cr Connors said.

"If the state were to match the total federal funding of $9.5m (the state's component at the moment is $5.5 million) that would bring the funding back to what we sought in December. There's obviously been more increases to costs, but that's what happens with these delays - the price goes up."

The Chronicle asked minister for NSW Regional Transport and Roads, Jenny Aitchison whether the State Government could commit to match federal funding for this project.

"Design, construction and funding for a new bridge at Clarence Town is the responsibility of Dungog Shire Council as it is located on a local road," Ms Aitchison said.

"Through our new Regional Roads Fund, we have committed to an historic $3 million 10-year co-funding agreement for Dungog Shire Council. Dungog Shire Council is also receiving $1.84 million this year from our new Regional Emergency Road Repair Fund.

"This is all in addition to $9.72 million in betterment funding I recently signed off on for Dungog Council to upgrade various pieces of its infrastructure which were damaged during natural disasters.

"We are carefully considering the impacts of all decisions made following the Australian Government's infrastructure review."

Mr Connors said that Dungog Council is currently seeking a meeting with Ms Aitchison regarding funding for this project and that at the moment the project is not possible.

"The project's not possible at the moment with the funding we've got. If the state matches the federal funding then with some further redesign work it may be possible but we will be seeking from the state the funding that is needed to build the bridge. We'll have to look at options," Mayor Connors said.