The €2.2 billion funding for the State's infrastructure is the first step on the road to completing the Government's radical Transport 21 plan, the Minister for Transport Martin Cullen said this evening.
Mr Cullen said it would move Ireland towards an integrated transport policy for the 21st century.
"The full 2006 impact of Transport 21 which was published in the last two weeks will be dealt with in the Budget and in the Revised Estimates.
Today's Estimates is just a snapshot and a flavour of what is to come," the minister said.
"The flag is raised on Transport 21. However given the long lead-up times to construction, the real step up in capital investment will occur in 2007.
The work is now well underway across the delivery agencies and next year's revised estimate is fully consistent with the implementation of Transport 21."
Mr Cullen promised that fuller details of Transport 21 would be given in the Budget next month.
From January control of commercial ports, shipping and regional ports and harbours will be transferred from the Department of Communications, Marine and Natural Resources to Transport officials.
Mr Cullen said: "This transfer of functions enables all major transport issues relating to both services and investment across the roads, public transport, aviation and maritime transport sectors to be integrated under the aegis of a single Department of State.
"This move makes obvious sense in the context of the implementation of Transport 21 in the coming months and years."
The Estimates revealed that construction would begin on the Luas extension to Cherrywood next year along with increasing capacity on rail routes to Kildare, the New Docklands rail station, Cork commuter services development, and the Portlaoise traincare depot.
The minister said planning and design would begin on DART line resignalling, phase 1 of the rail line to Navan (Dunboyne), phase 1 of the Western Rail Corridor (Ennis-Athenry), Luas Docklands extension, cross-city link, Citywest extension and the Metro.
The Estimates include €1.3 billion for road improvements and 55m euro for road maintenance. An estimated €240 million of Public Private Partnership funding will be invested in national road projects during 2006.
Some €1.4 billion will be invested in the National Roads Development Programme and almost €21 million will be invested in regional airports, the Estimates revealed.