The ACT Government has committed a total of $17 million for the construction of a light rail service for the Canberra in its 2013-14 Budget.

The Territory Budget will provide $5 million to complete early design work for Capital Metro, while $12 million will be provided over a four year period.

The Australasian Railway Association (ARA) has welcomed the announcement, with CEO Bryan Nye commending the establishment of the Capital Metro Agency which will oversee the delivery of the project.

“In the ACT budget released today, we have seen the first funds for Canberra light rail project, a congestion busting project that will change for the better how people get around in our nation’s capital”, Mr Nye said.

“Light rail will take the pressure of Canberra’s increasingly congested roads providing a more environmentally viable, faster and safer way to travel”, Mr Nye said.

“The announcement of a future light rail project is a great milestone for Canberra and deserves the community’s full support.”