City Hall says the money is being used to install 43 new bike racks, new cycle lanes and the refurbishment of existing lanes.
Racks will be installed at a number of locations including Grand Parade, Ballincollig Regional Park and Parnell Place, with space for around 500 bikes.
Work has also started on 2.9 kilometres of 'interim' protected cycle lanes at Centre Park Road and Monahan Road.
Over 4.5 kilometres of Orca wands will be installed in the city centre and suburbs, whole overnight works to to upgrade and re-line cycle lanes will also take place.
