The Australian Government has announced the start of construction on the Canberra Light Rail project’s Stage 2A extension, which will connect Civic to Commonwealth Park.

The project forms part of a broader plan to improve transport connections in the rapidly growing capital.

The joint investment of A$577m ($366m) by the Albanese and Barr Labor Governments for the project aims to prevent future congestion and provide seamless transit through Canberra.

The Stage 2A extension will include 1.7km of new rail line from Alinga Street to Commonwealth Park, a bridge over Parkes Way, and three new stations.

The project is being delivered by CPB Contractors, Pacific Partnerships, and UGL, all part of the CIMIC Group.

UGL is involved through the Canberra Metro Operations (CMET) joint venture, which currently operates Stage 1 of the light rail and will take on the operation of Stage 2A once completed.

The project is due for completion in 2027 and will connect Gungahlin and North Canberra to several key locations, including City West, the Australian National University (ANU), New Acton, Commonwealth Park, and Lake Burley Griffin.

The construction of Stage 2A is projected to generate approximately 1,000 jobs and will significantly influence how both visitors and residents navigate the city.

Australian Federal Infrastructure, Transport, Regional Development and Local Government Minister Catherine King said: “Light rail is future-proofing Canberra with a modern public transport system, connecting residential areas with employment precincts, and recreation and lifestyle hubs.

“It’s one of a number of significant projects we’re investing in to build Australia’s future, from the cities to the suburbs.”

The Stage 2 extension will connect the existing Stage 1 rail line to Woden and is divided into two stages.

Stage 2A will extend the light rail from the City to Commonwealth Park, while Stage 2B will extend from Commonwealth Park to Woden.

The entire project is anticipated to be complete by 2033.

ACT Minister for Transport Chris Steel said: “Light rail has proven the benefits of mass transit in Canberra. This next stage is critical to building out the network and delivering better public transport to the rest of the city.

“Stage 2A is part of our wider vision of building a north-south light rail line to Woden, integrated with electric buses to our suburbs.”