Minster for Regional and Rural Development and

member for Bendigo East Jacinta Allan said the $3.2thmillion project was also being funded by the City of Greater Bendigo, which is contributing $1.3 million.

Ms Allan said the extension would enhance and complement the existing tourism infrastructure and

create jobs.

``It will create a significant cycling and walking experience to attract lucrative tourism to the region that will be a great benefit to food, wine and hospitality businesses in the region,'' Ms Allan said.

``This boost will facilitate growth in jobs and skills training opportunities, create facilities benefiting resi

dents and visitors, and increase community

cohesiveness and pride.

``There has been a great wave of support for these

rail trails, from cyclists and walkers, as people get the

chance to get out and be fit and healthy and enjoy the

natural environment.

``The popularity of rail trails is growing day by day.''

The 24-kilometre extension will be from Axedale to

Heathcote.

``This funding will help upgrade the track to a level that people are looking for,'' Ms Allan said.

The $1.9 million is in partnership with the City of Greater Bendigo which is contributing $1.3 million.

The state government funding is part of the Regional Infrastructure Development Fund.