The LRT will create 11km of line and is intended to help transform the area around Finch Avenue West into a vibrant community.
Earlier this month, Ontario had moved ahead with a plan to unlock the value of some public assets to provide approximately CA$4bn to build new transit and other priority infrastructure projects.
The work is part of Moving Ontario Forward - the largest infrastructure investment in the province's history plan. The plan will make CA$31.5bn available over the next 10 years for investments in priority infrastructure projects across the province. About CA$16bn is being allocated to transit and transportation projects in the Greater Toronto and Hamilton area and about CA$15bn is being made available for investment in roads, bridges, transit and other critical infrastructure in the rest of the province.