Major construction on Phase 3 of the light rail will begin next month with the state government finally signing a contract for the project.
But the line from Broadbeach to Burley will now be delayed by two years and cost $500 million more than originally forecast.
The contract with John Holland was finalized earlier this week, after 18 months of negotiations.
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The original cost of Stage 3 was estimated at $709 million when it was first announced, but will now cost $1.2 billion.
It is not expected to be completed until the middle of 2025.
The 6.7 km line will see the construction of eight new stations including Mermaid Beach, Noby Beach, Miami and Burley Heads.
Premier Anastasia Palaszczuk says Stage 3 will create 760 jobs.
“John Holland is already doing the initial work, and is now ready to take the field,” said the premier.
“We know Gold Coasters love Light Rail, G recently hit a milestone 60 million trips since it opened.”
Transport and Main Roads Minister Mark Bailey says work should begin in the coming weeks.
“Stage 3 is the next step in delivering the envisaged 42 kilometer light rail connection from Helenswell to Coolangatta,” Mr Bailey said.
“There has already been a significant amount of early work done by John Holland and we will now see a significant increase in construction work on the site.
“At this rate, we are on track to operate between Broadbeach and Burleigh” Heads to start by mid 2025.”
Mayor Tom Tait has welcomed the development and is expected to push for plans to start from Stage 4 to Coolangatta.
“Light rail is the public transport backbone of our city and when it comes to connecting the system to Burley and beyond, I say let’s go.”