LUXEMBOURG: Luxembourg city council has approved funding for a tram line and the creation of operating company LuxTram.

The cost of the project is expected to be €345·78m, of which two-thirds will come from the central government and one-third from the city council. This is to cover studies, infrastructure work, the construction of a depot at Kirchberg and procurement of rolling stock.

In addition, the city will contribute €2m to LuxTram in share capital and €1·245m for operating costs in 2014, out of an estimated total of €4m.

Construction of the first phase from the main station to Circuit de la Foire in Kirchberg is expected to begin in late 2015. The operating cost of the line is estimated at €18m per year.