A project to link light rail from Canberra's city centre to Commonwealth Park has been signed off by a key federal government agency.
The National Capital Authority has granted works approval to stage 2A of the ACT government's light rail project, which will extend the line by 1.7 kilometres.
The authority had found the territory's proposal to be consistent with the National Capital Plan, but said it had referred some issues identified by the community during the consultation process to the ACT.
Federal Infrastructure Minister Catherine King said the Commonwealth and territory governments would continue to work closely on future stages of the light rail project.
"We know our national capital is fast growing - and as we plan for the infrastructure needs of tomorrow, it's important we ensure the future of this great city is consistent with the National Capital Plan," Ms King said.
"Through extensive public consultation and careful consideration of the required criteria - that's exactly what the NCA has done - and work on this nationally-significant project can continue to progress."
National Capital Authority chief executive Sally Barnes said the authority was pleased to green-light the works approval application for the light rail extension.
"This extension will provide a much-needed public transport connection between the city centre and Commonwealth Park and will help to reduce traffic congestion and improve air quality in the city centre," Ms Barnes said.
The authority had approved the project to raise London Circuit to the level of Commonwealth Avenue in March 2022. The ACT submitted works approval documentation for stage 2A in late 2022.
However, the plans for stage 2B was unlikely to be approved "for many years", the authority has said.
Transport Minister Chris Steel said the ACT would, having received all major approvals for stage 2A, now turn its attention to the route to Woden.
"I thank the Commonwealth for their support in delivering this important piece of city-shaping infrastructure, that will support thousands of jobs and make Canberra a more sustainable and vibrant city as our population grows," Mr Steel said.
Mr Steel said the National Capital Authority's works approval represented a major step towards delivering light rail to Woden.
"The extension of the popular light rail line will transform the southern part of the CBD into a better place for people with public transport connectivity to major employment and recreation precincts in City West, the ANU, City South, Acton Waterfront and Commonwealth Park," he said.
The ACT budget, released last month, included $50 million for planning works for stage 2B, which will be built between Commonwealth Park and Woden.
The Woden light rail project risked being held up by Australia's most complex approvals process, which instead should be streamlined, the ACT told a federal parliamentary inquiry in May.
The territory said it wanted to find a faster way to cut through the multiple layers of approvals required, calling for talks with the Commonwealth to create a smoother system for signing off on the transport project.
"This collaboration would help in ensuring a timely delivery of this critical project for the nation's capital city," the ACT government's submission to a parliamentary inquiry said.
Doubt was cast over the ACT's preferred route to Woden late last month, after Ms Barnes told a separate parliamentary inquiry the proposed alignment around State Circle was technically challenging.
"It's not off the cards yet, but we're expecting to have discussions with the ACT government fairly soon about - would there be another way to traverse the national triangle?" Ms Barnes said.
"We're more than open to have a look at those other ways because if it's difficult, it's difficult."
Mr Steel said the ACT government would still prefer to build light rail down Commonwealth Avenue and around State Circle, rather than through the parliamentary triangle, but the benefits of another route would be considered.
"We're at a very early stage, but we've always said that this would throw up some challenges of being a major complex project going through an area of national significance," he said on June 30.
The latest precinct map includes stops at Kings Avenue, Sydney Avenue and Melbourne Avenue.
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