This follows the news that both Welsh Government and the UK Government have confirmed their financial contributions for the project - £50m from the UK Government, with Welsh Government match funding a further £50m for the scheme.

Graham Group has been appointed under an Early Contractor Involvement (ECI) Contract, which will allow the Council and TfW to work with them during the early stages of the contract to manage the cost of the design and how the project will be built.

The project has been divided up into two delivery phases, which are:

Phase 1a) Cardiff Central to Cardiff Bay Station. This phase is fully funded and will require a significant redevelopment of the highway network around Callaghan Square, so the tram/train can connect onto the existing Cardiff Bay train line, as well as a new tram/train platform at Cardiff Central.

To ensure that the tram can interconnect with walking and cycling routes, there will be new public realm in front of Callaghan Square, a new segregated cycleway to connect Cardiff Central with Callaghan Square linking with the wider strategic network, and changes to the access arrangements for general traffic through Bute Terrace and Lower St Mary Street.

Phase 1b) Cardiff Bay Station to Pierhead Street. This phase isn’t currently funded but will include the re-modelling of the highway network around the Flourish and Pierhead Street to allow for a new tram track extension to be built. This part of the scheme will also include improving facilities for pedestrians and cyclists, with new crossing facilities and a new segregated cycleway to better connect Roald Dahl Plass with the new indoor arena development. 

A Cardiff Council spokesperson 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.

“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.”