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The Federal Transit Administration (FTA) recently announced it will provide $9.9 million in grants to the San Francisco Municipal Transportation Agency (SFMTA) for ongoing preliminary engineering and design work for the Central Subway.

The proceeds will help fund the subway’s second phase, the Third Street light-rail project. Earlier this year, the project received a “positive review” as part of the FTA’s New Starts program, and high ratings for environmental and transit-supportive land use benefits.

The two-phased Central Subway project calls for extending light-rail service with a surface stop on 4th Street near Brannan Street, and providing subway service under the South of Market, Union Square and Chinatown neighborhoods. SFMTA plans to operate the service as an extension of the T Third light-rail line, which opened for revenue service in April 2007.

The $1.6 billion Central Subway project now has received $66 million in New Starts funding; the federal government is projected to contribute about $1 billion. The FTA granted environmental clearance in November 2008 and is expected to approve the commencement of final design by year’s end. SFMTA plans to launch construction in 2010 and begin revenue service in 2018.