Tenders have been called for parts of the work to extend the Metro tram system through the streets of Birmingham city centre this week.
Department of Transport gave the green light to the scheme last week along with nine other local transport projects.
The Government’s confirmation of funding means transport authority Centro are now inviting companies to bid for key elements of the project such as supplying a new fleet of trams and the building of a new maintenance depot at Wednesbury.
It also means that the extension from Snow Hill Station to a rebuilt New Street Station remains on course for completion by 2015.
Deadline for tenders is 11 March.