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Construction of another light rail transit line received funding from the federal and Ontario governments today, but the TTC will have to wait a little longer to find out whether its billion-dollar order of Bombardier-made streetcars will also be covered.

As the mayor and a group of TTC employees looked on, Prime Minister Harper and Premier McGuinty announced their intention to jointly pay for a $950 million LRT line stretching eastwards along Sheppard Ave, in addition to the 63 cars that will run on the line.

But, while construction of the Sheppard line is expected to begin later on this year, both Harper and McGuinty declined to speculate if and when their governments would hand over the $1.2 billion necessary to replace Toronto’s aging fleet of red rocket streetcars.

“Our immediate priority is to provide funding for projects that are ready for construction right now,” Harper said. “Our economic action plan is designed to deliver stimulus today.”

In April, the TTC awarded Bombardier with a conditional contract to construct 204 new streetcars and a maintenance yard, claiming that the deal would create thousands of much needed jobs during the recession. Under the plan, the first of new vehicles would be ready by 2011.

Earlier this month, the city put in a request for government funding of at least two-thirds of the bill, but has yet to receive official confirmation that money is forthcoming. The city has until June 27 to confirm the contract.

In addition to the streetcars, 263 light rapid cars for the new lines require funding.

Mayor David Miller acknowledged that further negotiations were required before funding for the new streetcars was secured. But, he expressed optimism that Toronto would get its new fleet as planned.

“Standing here surrounded by streetcars today, (it’s) hard to believe that we won’t resolve our differences,” Miller said. “We’re not there yet, but we’re working with both governments.”

The 14 km Sheppard East line is part of the Transit City project which, when completed, will cover much of the GTA in light rail lines. Already, two other lines secured funding from the Ontario Liberals. In all, eight lines are planned.