Work on Dublin’s cross-city Luas line is to begin in May next year, Minister for Transport Leo Varadkar announced today.

The Cabinet today approved an updated business plan for the €370 million line, known as Luas BXD, which will link the existing red and green tram lines.

The pre-construction works are due to begin in May with the main construction beginning in 2015 and a scheduled completion date of 2017. Mr Varadkar has asked the Transport Authority (NTA) and the Railway Procurement Agency (RPA) to prepare for the works.

The line will run from St Stephen’s Green, down Dawson Street and Nassau Street, through College Green, Westmoreland Street and O’Connell Street, where it connects with the Luas Red line.

It will serve the new DIT campus at Grangegorman and terminate at the Iarnród Éireann station at Broombridge in Cabra.

Major traffic disruption can be expected on St Stephen’s Green and surrounding streets when the work gets under way.

Mr Varadkar said the move would give the capital “an integrated commuter rail network for the first time”.

“The two Luas lines should have been joined up years ago.” Mr Varadkar said, adding that it was a “privilege” to be “able to finish the job".

The construction phase is likely to generate 800 temporary jobs with some 60 permanent jobs as a result of the project, the Department of Transport said.

A working group comprising the RPA, NTA and Dublin City Council has been set up to examine traffic arrangements during construction while a broader forum including businesses and the Garda is also proposed.