With federal funds in place, Capital Metro Transportation Authority is set to complete design work on the two-route rapid-bus system that will run along North Lamar Boulevard to South Congress Avenue and Burnet Road to South Lamar.

Federal Transit Administrator Peter Rogoff announced April 10 that the transit authority would receive funding for 80 percent of the total $47.6 million project cost. The $38 million grant comes from the FTA's Very Small Starts program.

"The FTA has agreed to put forward 80 percent funding for this project because we know it's going to have a real quality-of-life improvement for people throughout the Greater Austin area," Rogoff said.

Capital Metro board members, CEO and President Linda Watson and city transportation officials gathered on Republic Square Park for the announcement of the grant funding that effectively opens the doors for the transit authority to move forward with planning and construction phases. Attendees toured a sample accordion-style bus that will run along North Lamar and South Congress and rode along part of the route the new bus will take.

Watson said 40 new buses would serve 77 bus stops and allow riders to connect to other bus routes and the commuter rail line, which stops downtown at 401 E. Fourth St.

"We're talking about more than 20,000 boardings a day on the two routes that it will operate on when it opens up in 2014," she said. "We're talking about mobility, and MetroRapid will connect people to major hubs of education, government and business in the most densely populated areas of the city."

The first route will run from the Tech Ridge Park and Ride along North Lamar Boulevard, pass through downtown and continue on South Congress Avenue to Southpark Meadows Retail Center. The second route starts from North Austin Medical Center, down Burnet Road, onto South Lamar and stops at the Westgate Transit Center. The two routes will form an 'X' downtown, allowing for more frequent service and access to the other route.

Capital Metro plans to run the buses daily from 5 a.m. to 1 a.m. with fewer service hours on Saturday and Sunday.

Todd Hemingson, Capital Metro vice president of strategic planning and development, said he anticipates being able to start construction on the 77 bus stations by the end of summer. The stations will each have a bench, system map, standard route sign and a real-time digital display to show riders the anticipated arrival times of the next two buses. He said the real-time information would even be accessible by mobile phone.

Capital Metro also is partnering with the city on the project through the GPS system to communicate with the city's traffic system and allow the buses to have a longer green light at intersections.

Mayor Lee Leffingwell said adding the bus rapid transit is just one of the methods the city is undertaking to combat traffic. Other solutions include commuter and urban rail and high-occupancy lanes on major roadways.

"We're the 14th largest city in the country, and one of the fastest-growing regions in the entire United States of America," he said. "With that growth, of course, comes problems that we have to address to make sure we maintain quality of life along the way. Primary among those problems we're trying to address right now is transportation and congestion."