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The Federal Transit Administration (FTA) recently granted the San Francisco Municipal Transportation Agency (SFMTA) approval to begin final design for the Central Subway project, the second phase of Muni’s Third Street light-rail expansion.

Last year, the Central Subway project received a positive review from the FTA as part of the federal New Starts program. SFMTA recently received $6 million for the project as part of the federal fiscal-year 2010 transportation appropriations bill.

Now, the agency will award design contracts for tunnel, stations and systems work. Later this month, utility relocation work will begin near the tunnel portal and future Moscone Station.

To enter revenue service in December 2018, the 1.7-mile Central Subway will extend light-rail service to the Moscone Center, Union Square and Chinatown neighborhoods. Muni will operate the subway as an extension of the T Third light-rail line, which opened in April 2007.

The federal government will fund about $1 billion for the $1.6 billion project. SFMTA continues to work with local, state and regional agencies to secure other funding, and seek a Full Funding Grant Agreement with the FTA in FY2011.