Work on Cardiff's new tram system looks set to begin by the end of next year.
The UK and Welsh governments have confirmed £50 million each towards the start of the Crossrail scheme, which will initially run between the city centre and Cardiff Bay.
Lisburn-based engineering firm Graham Group was awarded the detail design and build contract following a tender process by Cardiff Council.
According to a spokesperson for the city council, the first trams could start running as early as 2028.
Phase 1a will link up the railway stations at Cardiff Central and Cardiff Bay - with major redevelopment work to be carried out around Callaghan Square, where there'll be a new public realm and a segregated cycle path.
Phase 1b - which is dependent on future funding - will concentrate on linking Cardiff Bay station with Pierhead Street, including re-modelling of the highway network to accommodate an extension to the tram track line.
The second phase would also include improving facilities for pedestrians and cyclists to better connect Roald Dahl Plass with the new indoor arena at Atlantic Wharf.
A spokesperson for Cardiff Council said: "It is great news that we have had the funding confirmed from both the UK and Welsh Government. This means that the detailed work can now begin, with the detailed design set to be complete by Autumn 2025 and work on the ground due to start at the end of next year."
"During the contract, the council and TfW will be working closely with the Graham Group to secure the best possible social value for the contract, by creating jobs, apprenticeships and training opportunities for local people."
"Under the current programme of works, the construction could be complete by early 2028, with trams running on the track from later that year."
Work is already underway at Cardiff Bay on building a second platform to accommodate the South Wales Metro - with a third platform set to be added for the Crossrail trams.
Council chiefs are aiming to eventually run the Crossrail scheme across the Welsh capital, but how it develops will be dependent on future funding.
A spokesperson added: “The Cardiff Crossrail is an ambitious plan to deliver Cardiff’s new tram transport system which will eventually run from the northwest of the city, all the way to the east of the city connecting with the proposed Parkway station."
Following further funding opportunities, we intend to provide a cross-city tram service that is affordable and reliable for the public to use, and to connect some of Cardiff's poorest communities to the rail network for the first time."
"To start this process, the first phase of the scheme must be built between Cardiff Central and Cardiff Bay. This will finally ensure that Butetown is properly connected to the city centre, via Cardiff Central, providing further capacity for residents and visitors to access the wide range of attractions that Cardiff has to offer."
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