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Calgary politicians were positively giddy Friday after the federal government pledged $1.53 billion for the city’s long-sought LRT Green Line, despite numerous challenges still facing the project.

The contribution from the federal Public Transit Fund accounts for one-third of the project’s $4.6-billion price tag.

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“It’s an extraordinary investment and it will change the face of this city forever,” said Mayor Naheed Nenshi, while city and federal politicians posed atop Rotary Park with downtown towers and the Centre Street Bridge in the background.

While city officials bathed in the promise of funding announced just weeks before a federal election is called, several significant issues could derail the project.

The final alignment of the 50-kilometre track and its 27 stations has not been completed. A land acquisition strategy needs to be determined. The city still needs to buy as much as $100 million in land along the route.

Further, the city must settle on one of four options currently on the table to connect the north-central leg to the south line through downtown.