The provincial government announced Friday a multi-billion dollar transit plan for Toronto and Hamilton that will ease congestion and create faster commute times.

In a campaign-style entrance aboard a city bus, Ontario Premier Dalton McGuinty announced the rapid-transit action plan at a Mississauga, Ont., bus garage.

The plan will see $17.5 billion invested in transit over 12 years starting in 2008.

MoveOntario 2020 will build 902 kilometres of new or improved rapid transit with 95 per cent of the construction expected to be completed by 2020.

"What this is really all about is jobs," McGuinty said during the press conference.

"Our ability to have a growing prosperous economy and the good high-paying jobs that come with it, is dependent on the ability to move goods and people quickly, safely and efficiently."

More than 175,000 jobs are expected to be created for the 52 new projects that include:

  • The extension of the Yonge St. subway line to Highway 7
  • Electrifying the GO Lakeshore line and expanding capacity on all GO lines
  • Expanded express bus service across Highway 407
  • Two rapid transit lines across Hamilton
  • Air-rail link from Pearson International airport to Union Station
  • Nine light-rail projects proposed for various locations across the GTA

The electrification of the GO Transit line is expected to cut emissions in the province and reduce commute time from Hamilton to Toronto by 15 minutes.

"That can make the difference between hearing about your daughter's first soccer goal or seeing it yourself," McGuinty said.

The plan is expected to remove 300 million car trips from the road.

"That's great news for the air we breathe and the fight against climate change," McGuinty said.

Financing for the massive undertaking will be spread over 50 years with the province covering two-thirds of the capital costs in partnership with municipalities.

The province is taking one-third of the funding off the shoulders of the City of Toronto. Funding for transit is normally divided evenly between three tiers of government.

The Ontario government is calling on Ottawa to provide the remainder of funding.

"After all, Ontario remains the economic engine of Canada and the federal government has a responsibility to ensure that engine runs smoothly," McGuinty said.

With a report from CTV's Paul Bliss