Work on two tram extensions could start in 2010 after Department for Transport agrees £437m funding package

The government has approved plans for the £578m PFI Nottingham tram extensions.

The Department for Transport will contribute £437m for two extensions at Nottingham station. The remainder will be funded by Nottingham City Council and Nottinghamshire County Council.

Provided construction costs are kept under control, construction of the extensions could start in 2010.

Transport secretary Douglas Alexander said: “We’re still at an early stage in the approval process, but we will continue to work with the Nottingham authorities so they can deliver a tram that is attractive to passengers and value for money for the taxpayer.”

The approval is at 'programme entry'. This is the DfT’s initial approval stage. The next step is for the councils to get Transport and Workers Act approval, followed by conditional and full approval.