THE flagship Mersey Gateway bridge will be built after the government pledged to pump an extra £150m into the stalled project, ministers will announce today.

A deal has been struck to allow Halton Borough Council to press ahead with finding a private firm to construct and operate the badly-needed second crossing – ending many months of uncertainty.

The logjam has been broken by the department for transport (Dft) agreeing to find an extra £5.5m a year towards private finance initiative (PFI) repayments for 26.5 years, almost £150m in total.

In addition, Halton council chiefs have found £30m in savings to help bring down the bill for the six-lane bridge, which will still cost a whopping £589m.

The long-awaited agreement on a financial package means construction will start in late 2013, allowing the new crossing to open in 2016 or 2017 – delivering the region's most important transport project.

The announcement was timed to coincide with the start of the Conservative

party conference in Manchester, where ministers are keen to prove they are delivering for the North, amid harsh spending cuts.