The first passengers could travel on the restored section of the Douglas Bay horse tramway during the 2028 summer season.

Tynwald approved funding of up to £3m in July to allow the line to be restored to its full length along the Promenade.

The Department of Infrastructure confirmed that a tender process for the tramway construction work is being developed and will be launched early next year.

A spokesperson said: ‘The first passengers are expected to use the new section during the 2028 summer season following a construction programme that’s provisionally forecast to run for 35 weeks.’

At July’s Tynwald sitting, members voted to transfer £2.5m from general reserves for the tramway extension project, with a further £500,000 held by Treasury as a capital contingency.

The funding follows Tynwald’s approval in June of plans to extend the horse tram line back to the Sea Terminal.

Currently, horse tram services operate only between Derby Castle and Broadway.

The trams last ran the full route to the Sea Terminal in 2018, before services were suspended during the £26m Douglas Promenade regeneration works.

Services resumed in 2022 on the shortened route, with plans to reinstate the full line having been paused in 2021 after £750,000 of funding was reallocated.

King Charles III visited the island on July 14 and travelled on a restored horse tram car during celebrations marking the tramway’s 150th anniversary.

Earlier this year, the heritage railway’s chief engineer said the cost of reinstating the line had risen to just under £2 million, including a 10% contingency.

However, Treasury later outlined a revised figure of £3,036,170, including a larger contingency allowance.

The government has previously said the additional contingency reflects the complexity of the work and the need to manage potential risks during the reinstatement project.