The government of Canada has earmarked funding of up to CAD1.09bn ($820m) for the Ottawa Light Rail Transit Stage 2 Project.
The second stage of the project will involve the construction of an additional 38.8km of rail and 23 new stations. Construction work on this phase is expected to start in 2019 and will be concluded in 2023.
According to the government, 70% of Ottawa residents will reside within 5km of light rail transit following completion of the project.
Canada prime minister Justin Trudeau said: “The expansion of Ottawa’s light rail transit system will make it easier for residents and visitors alike to get around and experience everything our capital city has to offer.
“This expansion will help Canadians get to work and back home to their families on time, make our air cleaner, and create good, well-paying middle class jobs.”
The government also offered up to CAD762m ($573m) to fund the first stage of the transit project. Construction on this stage is currently underway.