UP to £20million is set to be spent improving two bus stations and congested main routes around Blackburn.
Blackburn with Darwen Council's East Lancashire Rapid Transit' scheme has been included in a list of top-priority projects being put forward in the North West for Government approval.
The unelected North West Regional Assembly made up of local councils was asked to draw up a list by the Department of Transport, which it will now rubber stamp.
The East Lancashire Rapid Transit project involves improving the A666 from Darwen to Blackburn, and Accrington Road towards Hyndburn so that buses can pass along the road more quickly.
Massive improvements would also be made to Darwen and Blackburn bus stations, the latter of which has come under fire in the past for being unappealing to public transport users.
The success in getting on the final list of projects comes less than a year after Lancashire County Council and Blackburn with Darwen Council took over the rapid transit project from the now defunct East Lancashire Partnership.
The partnership had been tasked by East Lancashire's councils in the late 1990s to find ways of creating a better public transport network in East Lancashire.
For four years, it investigated the possibility of a light rail/tram system.
That idea was finally ditched last year after it was concluded that East Lancashire would be too hilly to support such a scheme and that government support for tram systems was now waning.
Lancashire County Council and Blackburn with Darwen Council officers took over a replacement project, aimed at making existing bus services quicker and more reliable.
This first scheme, which follows the route of Blackburn Transport's Track One service between Darwen and Accrington via Blackburn, is expected to be the first of many coming forward in future years, using different funding packages.
Bus lanes will be created on some parts of the route, while congested junctions will be altered so that buses can sail through.
Coun Andy Kay, executive member for regeneration at Blackburn with Darwen Council, said: "This project is all about making public transport more reliable and accessible to people.
"We want public transport to be seen as a viable alternative to the car, and we are very hopeful the scheme will now get Government approval."
Lord Peter Smith, chairman of the NWRA Executive Board, said: "The NWRA Executive Board reached broad consensus on what should be the region's top transport priorities.
"We had to make tough choices, but we would rather do this ourselves in the region rather than have it done to us by Whitehall."
A proposed scheme to build a bypass around villages in Pendle was not included, and did not even make a reserve shortlist.
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