The work is expected to take around nine months to complete and will focus on the Marechal Humberto Delgado square which surrounds Lisbon zoo. The intervention will start during the first week of September, almost three months later than initially foreseen.
It includes above and underground parking and improvements to drainage, resurfacing work and the creation of a roundabout.
Local Parish Mayor António Cardoso said the work will be carried out over two phases to reduce the impact on city residents.