The Queensland government has selected construction giant CIMIC Group to build the next stage of the Gold Coast light rail, after finalising $420 million funding for the long-anticipated project.

CIMIC said its construction arm CPB Contractors will start work on the project in April. The project is scheduled to be completed in late 2017, in time for the 2018 Commonwealth Games.

The second stage received a boost in 2016 when the Turnbull government agreed to contribute $95 million to the funding for the project to connect the existing light rail system with the main rail line to Brisbane.

CIMIC’s work will include a 7.3 km dual track alignment, three additional light rail stations, and two car park facilities, the company said.

Revenue from the project wil be confirmed at contract execution, it said.