The extension of the Luas Green Line from its current terminus in Sandyford to the new town of Cherrywood was given Government approval today with the signing of a Railway Order by Minister for Transport, Michael Cullen.
The exact route of the extension has yet to be decided but it could add up to 8.3km to the line which is currently 9km long.
As a result of a deal between the Railway Procurement Agency (RPA), Dun Laoghaire Rathdown County Council and a group of developers, more than half of the cost of the extension will be funded by the private sector.
It is expected that the extra track will be laid by 2010. The RPA expects the extension will increase the number of passengers using the line annually from 10 million currently to 18 million.
Eleven new stations will be build along the route including stops at Leopardstown Racecourse, The Gallops, Ballyogan Road, Brennanstown and Laughanstown. A park-and-ride facility with capacity for 300 vehicles will also be developed at Carrickmines.
The extension is one of the transport initiatives included in the Government's Transport 21 plan. That plan calls for the line to be ultimately extended to Bray to link up with the DART.
The RPA has identified a number of route options and will carry out public consultations on them in the coming months.