KITCHENER, Ont. — The federal government has announced millions of dollars to support public transit in the Kitchener-Waterloo region of southwestern Ontario.

Prime Minister Stephen Harper says the money will go toward construction of a light rail system between Kitchener and Waterloo.

A bus line between Kitchener and Cambridge is part of the plan.

Harper says the feds will kick in one-third of the costs -- up to $265 million.

The money is part of Ottawa's previously announced stimulus spending strategy.

If approved, the transit plan should be operational by 2015.

Harper says the plan will stimulate the regional economy.

"Projects like this will pay dividends for our economy and our communities long into the future," Harper said.