The public realm works in both towns, which has taken three years in the planning, and will transform the town centres, helping to re-establish them as modern contemporary market towns whilst retaining their unique original character.
Pavements will be widened, civic spaces will be improved and side streets will be developed to encourage café culture.
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Mayor of Craigavon Meta Crozier said she was delighted that the contractors have now been appointed.
"The investment will bring some local employment within the construction industry and ensure that our town centres are fit for the 21st century.
"I would like to thank all the funders and in particular the Department of Social Development for the substantial amount of funding – without which the project would simply not happen. The public realm works will transform our towns."
The project is being led by a steering group with representatives from Craigavon Borough Council, Portadown 2000, Lurgan Forward, Translink, Northern Ireland Planning Service, the Department for Regional Development Roads Service, Northern Ireland Water and the main funders of the scheme the Department for Social Development.
It is anticipated that initial works will start in early October.
(PR/KMcA)
