Plans to extend Manchester’s tram network have been given the go ahead as the Association of Greater Manchester Authorities (AGMA) has agreed £500m funding for the proposals.

At an AGMA meeting last week, leaders of the city region’s ten local authorities confirmed the funding to deliver three new tram lines.

This means Metrolink trams will run to Oldham and Rochdale town centres by spring 2014 and to Manchester Airport by mid-2016.

Lord Peter Smith, chair of the AGMA executive, said: “Public transport has a crucial part to play in supporting Greater Manchester’s economy and these Metrolink extensions will give a huge boost to the region.

“The major transport schemes covered by the Greater Manchester Transport Fund have been prioritised based on their value to the regional economy.

“They have been identified as schemes that will support economic recovery and future growth by both creating jobs and improving access to jobs, education, leisure and healthcare.

“If delivered in full, the investment programme is forecast to increase total employment in Greater Manchester by 21,000 by 2021 above what it would otherwise have been. Overall, the potential programme is forecast to be worth £1.3 billion per year by 2021.”

Last week, a consortium led by AGMA was picked to run a regeneration fund of up to £350m. This followed an earlier announcement of £52m cuts in funding for schemes by the North West Regional Development Agency.

Manchester Airports Group has also agreed to provide a contribution to funding for the airport line.

Beyond 48 trams already on order for the Metrolink network, 14 new trams will be ordered to serve the extensions. This will bring the total number of new trams for Manchester’s expanded Metrolink to 62.

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