Manchester's popular Metrolink tram service will be extended to Rochdale, with stops at Drake Street and the bus station. There will be improvements to the town's existing passenger rail line - including the introduction of new trains and upgrades to station facilities, with enhanced CCTV and passenger information systems.
Park and Ride facilities will get more parking spaces; more bus routes across the borough will be created; services will be made more frequent and safer; and there will also be a brand new transport interchange in the heart of Rochdale town centre.
The Department for Transport is now likely to launch a wide-ranging public consultation exercise over the coming months.
Speaking following the announcement of the Governments, approval, Councillor Alan Taylor, leader of Rochdale Borough Council, said:
"It's brilliant news to at last know what funding central government are going to provide so that the proposals for better public transport networks can be developed in further detail. I'm very excited at the prospect of Metrolink coming into Rochdale town centre - which by then will have undergone a major redevelopment - and arriving at a brand new transport interchange.
"Today's announcement is fantastic for the Rochdale borough as it will bring even more investment and prosperity. Not only will it provide better transport links with other parts of Greater Manchester, but also it will better connect places within the borough.
"This is 30 years' worth of public transport investment in one go - investment like we've never seen before. It's difficult to comprehend the extent of the transformation that's going to happen but residents of the borough can be sure that the improvements will be hugely beneficial. I'm especially keen to make sure that local people and businesses are consulted on these important decisions and that they have all the detailed information they need to make informed judgments on what the plans will mean in the long-term."
Roger Ellis, chief executive of Rochdale Borough Council, added: "It's worth stressing that this isn't just about Metrolink. This is about giving people a number of viable options other than using their car to get around both the borough and the rest of Greater Manchester. The impact that that will then have on making roads less congested and communities cleaner and greener will be enormous. The new transport interchange is one of the key building blocks in the transformation of Rochdale town centre so it's also a massive boost for the town's regeneration to know that it will now happen."
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