Nexus has secured more than £300 million commitment from Government to invest in the next phase of renewal and modernisation for the Tyne and Wear Metro.

The announcement by Rosie Winterton, Minister of State at the Department for Transport, to support Phase 2 of Metro Re-invigoration is by far the biggest financial deal for Metro since it opened in 1980.

In addition to investing in modernisation projects costing approximately £350 million over the next 10 years the Government has made an equally significant commitment to underwrite the operating costs of Metro up to 2019.

The announcement has been welcomed by Nexus, the Tyne and Wear Passenger Transport Authority, business and community leaders in North East England as a vital boost to the region's transport network.

Cllr David Wood, Chairman of the Tyne and Wear Passenger Transport Authority, said: "Winning funding for Metro Re-invigoration Phase 2 is an historic achievement.

"When Metro was built in the late 70s it transformed life in Tyne and Wear and gave us a transport network that was the envy of Britain and the world."

Bernard Garner, Director General of Nexus, said: "Our 40 million passengers are already seeing Metro Re-invigoration Phase 1 take shape around them at stations like Haymarket, Sunderland and Simonside.

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"The deal we have won from Government will take modernisation to a whole new level, refurbishing stations and trains and making sure we have the technology in place to deliver one of the best railway networks in the UK.

"Re-invigoration is crucial because Metro gets people into and around the city easily to work, study and spend their leisure time. It provides the backbone of our public transport system and makes a massive contribution to the economic, social and environmental well being of the region.

"Now we have secured the future of Metro we want to use it to provide the springboard from which further ambitious, high quality transport plans can be developed and taken forward - improving connections with bus and extending park-and-ride to reflect modern lifestyles."

Nexus's Metro Re-Invigoration plans are split into three phases covering the next 20 years and represent a detailed business and asset renewal plan to secure the system's future and modernise it to meet future passenger expectations.

Phase 1, already underway, comprises more than £50 million investment, including: new ticket machines and barriers; a new station at Simonside (opened March 2008), rebuilding of Haymarket and refurbishment of Sunderland stations, and the overhaul of some bridges and tunnels.

Phase 2 will start in April 2010 and last nine years. It will include the modernisation of stations right across Metro, new communications system to manage train movements, modernisation of overhead power lines, plus other infrastructure and technology, the overhaul of scores of bridges and tunnels up to 160 years old, and the complete refurbishment of the 90 Metrocars that make up the train fleet.

Phase 3 will start in 2019 following further negotiations with Government. It will see up to a further £300 million invested, principally in a new fleet of Metrocars and a new signaling system to manage them. There will be further investment in ticket machines, track, overhead lines, structures and stations.

(CD/JM)