The federal and NSW governments will tip $1 billion into road projects around the state in a bid to prop up economic activity during the COVID-19 pandemic.

The projects include the alleviation of 11 Sydney road congestion hotspots as well as road upgrades and road safety projects around regional NSW.

The federal government – which is contributing $450 million into the projects – says the activity will help sustain 5500 jobs in NSW, where the unemployment rate sits at 6.4 per cent after the COVID-19 pandemic prompted widespread shutdowns.

Both federal and state funding will be sourced from previous-announced funds dedicated to accelerating infrastructure projects amid COVID-19.

“Partnering with state and territory governments to invest in more major infrastructure projects across Australia is a key part of our JobMaker plan to rebuild our economy and create more jobs,” Prime Minister Scott Morrison said in a statement on Monday.

Some 258 projects have been prepared across 83 NSW local government areas.