Bala Lake Railway will receive a grant of £850,000 to extend the railway into the town centre.

The money, from Welsh Government’s Transforming Towns Programme, will go towards extending the railway from Pen Y Bont, which has been the end of the line for more than 50 years, to a new station site in the town centre.

The extension will help strengthen the connection between the visitor attraction, high street and local businesses, and support the aim to create a vibrant, sustainable and attractive town centre for residents, businesses and visitors.

The project is expected to encourage visitors to spend more time in the town and surrounding area, supporting existing businesses and helping to create employment opportunities within the local economy.

Siân Gwenllian MS said: “It's fantastic to see such strong backing for this scheme from residents, businesses, and local councils, and I look forward to seeing this important project progress."

Cllr R. Medwyn Hughes, Cabinet Member for Economy and Community, said: “Extending the railway will enhance the company’s existing facilities while contributing to the town’s economic vibrancy.”

Bala Lake Railway Trust Chairman Julian Birley said: “It has taken 12 years of hard work and perseverance to reach this point.

“Thanks to the generosity of people locally and from around the world, we have raised £1.8 million to date.

“This has enabled us to to secure all the necessary approvals and permission, purchase land and complete the detailed design work.

“The funding will enable us to make significant progress with the work on the ground, and we can begin the work immediately.

“We are extremely grateful to Cyngor Gwynedd and the Welsh Government for their support for this project. It is particularly encouraging to see major project in North Wales receiving the support they need to deliver long-term benefit for local communities.”

Once completed, visitors will be able to leave their cars behind and travel by train through Eryri National Park.

Julian added: “The extended railway aims to enhance the quality of the experience available to both residents and visitors to Bala, while also contributing to the town’s economy.

“Once completed, the railway will operate as a sustainable attraction that residents and visitors can enjoy for generations to come.”

MP Liz Saville Roberts said: ‘‘By bringing more visitors directly into Bala town centre, this project will help increase footfall, support shops, cafés, and other local enterprises, and strengthen the town’s position as a thriving destination.

“I know the immense value heritage railways bring to our communities. They are not only important custodians of our history, but powerful drivers of tourism and local economic growth.

“I pay tribute to everyone who has worked tirelessly to make this project possible and thank the minister, Sian Gwenllian for her commitment on this matter.

“I now strongly urge all relevant authorities - including Eryri National Park and Dŵr Cymru - to work together as a matter of urgency to enable this project to move forward as soon as possible.’’