Canada pledges federal funds for Ottawa light-rail project's second phase

Canadian officials yesterday announced that the federal government will fund up to $1 billion (in Canadian dollars) for the second stage of Ottawa's light-rail transit project.

The contribution will cover up to one-third of eligible costs, following a formal application process. The project is aimed at creating jobs, spurring economic growth and reducing traffic in Ottawa, officials from Canada's Department of Finance said in a press release.

Ottawa already has received a total federal contribution of $761 million from the Building Canada Fund and the Gas Tax Fund for the light-rail project’s first phase.

The latest contribution comes from the new Public Transit Fund, which was announced as part of a larger plan to provide significant permanent support for large-scale public transit projects in Canada's biggest cities.

The Public Transit Fund has committed more than $80 billion in support of federal, provincial, territorial and municipal infrastructure projects across the country over a 10-year period, Canadian officials said.