The governments of Canada and Ontario announced funding to support a preliminary engineering study on a commuter rail link between Peterborough and Toronto.

The study will include preliminary engineering design work and will determine the upgrades needed to existing railway track to operate a commuter rail service between Peterborough and Union Station in Toronto. The federal and provincial governments are each contributing 50% of the cost of the study.

The funding agreement follows the federal government's commitment in Budget 2011 to co-fund the study with Ontario, reaffirming its support for the Peterborough Commuter Rail Project. The federal contribution will be provided through the Building Canada Fund – Major Infrastructure Component, a program under the Building Canada Plan.

Building Canada, the Government of Canada's infrastructure plan, has committed an unprecedented $33 billion in funding to infrastructure projects that are contributing to a growing economy, a cleaner environment and more prosperous communities.

The Government of Ontario has invested $75 billion in infrastructure since 2003, which has helped create and preserve an average of nearly 100,000 jobs each year. The Province remains committed to infrastructure investments that will make Ontario's economy more productive and improve the quality of life for all Ontarians, now and in the future.