Harper announces $2.6 billion in funding for SmartTrack

WATCH ABOVE: Harper announces federal funding for the SmartTrack transit project. Mark McAllister reports.

Prime Minister Stephen Harper announced $2.6 billion in transit funding in Toronto on Thursday, bringing Mayor John Tory’s SmartTrack plan one step closer to completion.

The federal funding announcement falls under the Conservative’s new Public Transit Fund, in which Tory’s SmartTrack transit project would be eligible to have up to one-third of its estimated $8 billion costs covered, Harper said at an announcement with Finance Minister Joe Oliver and Tory at the TTC’s Hillcrest Complex.

“What a great day for the city of Toronto, what a great day for the greater Toronto region, because this is an important regional project that has most of its presence in the 416 – but really connects this entire region together,” Tory said.

“It means so much to the people of this city and this region who voted for SmartTrack and who want to see it built, because they know that we need more public transit as soon as possible.”

Tweet This Click to share quote on Twitter: "It means so much to the people of this city and this region who voted for SmartTrack and who want to see it built, because they know that we need more public transit as soon as possible."

Under the PTF, proposals must have a minimum of $1 billion in costs in order to qualify, with Tory previously estimating SmartTrack to cost $8 billion. SmartTrack would stretch 53 km, include 22 new station stops and run on electrified rails through existing Metrolinx GO corridors, with an expected seven-year completion date.

WATCH: John Tory: Today is a great day for the city of Toronto

The federal funding for SmartTrack wouldn’t be available until 2019, but the province has already pledged $2.8 billion in its last budget to electrify Kitchener and Stouffville lines. The city has allocated $1.65 million to study the project, but would also need to pay for its portion of the project through developers’ investments.

“We’re on track, we have the studies out there we needed to get out there, they’re underway and I was told just yesterday that that work is well advanced and will be reporting back to the city council and to the executive committee in the fall,” Tory said.

The announcement comes just months before a federal election, with Harper targeting voters in the GTA, but Liberal MP for Trinity-Spadina Adam Vaughan called the move a “stunt” by the Conservatives.

“This is a half baked idea, a half baked announcement, because the money doesn’t arrive for half a decade,” said Liberal MP Adam Vaughan.

Tweet This Click to share quote on Twitter: "This is a half baked idea, a half baked announcement, because the money doesn't arrive for half a decade," said Liberal MP Adam Vaughan.

Harper responded to questions regarding the possibility that city council could vote against SmartTrack in the future by saying that the funding of the project would be extensive enough to gain support in the future.

“When the federal government comes along with $2.6 billion to assist a visionary project of the mayor, on which he was just elected, I would have a very optimistic view of the possibility of city council adopting this project,” he said.

Tweet This Click to share quote on Twitter: "When the federal government comes along with $2.6 billion to assist a visionary project of the mayor, on which he was just elected, I would have a very optimistic view of the possibility of city council adopting this project," he said.

In the most recent Conservative budget, funding would be allocated through the PTF on long-term loans and private sector involvement. It would start at $250 million in 2017-18 and grow to $1 billion a year in 2019-20, with the federal government suggesting municipalities could borrow against the revenue stream.

*With files from Mark McAllister