Sarah Boyack: "Innovative bid"

The PTF fund invites local authorities to bid for cash to finance projects in their areas.

Monday's fourth round allocation means that 81 projects have now received more than �175m in the last three years.

Announcing the cash, Ms Boyack said the latest round of cash would "make a difference" to Scotland's transport system.

She said the way in which the money had been allocated "enabled us to look further ahead and offer grass-roots support to a range of visionary strategic projects which could provide a major boost for Scotland's public transport network in future".

"These range from feasibility studies into the proposed Edinburgh-Penicuik rail link and possible enhancement of rail services around Dundee to an innovative bid to develop a light rail system in Edinburgh," she said.

'Practical benefits'

"I believe the investment in light rail in Edinburgh is an excellent example of the practical benefits of devolution. This plan has been talked about for 20 years but we are the first government to put money into actually delivering it."

Strathclyde Passenger Transport was a major beneficiary, with more than �13m promised and the prospect of new trains.

The �75.86m allocated will pay for projects, including:

• �1.8m for cycling, parking and walking improvements in Aberdeen;

• �2.5m for a new breakwater at Dunoon Harbour;

• �8.2m for enhanced rail services in Fife;

• �7.8m for bus corridors, trial of CCTV on buses and upgrading bus shelters in Glasgow;

• �3.7m to improve bus and rail interchange facilities in Stirling.

The announcement was welcomed by officials in Edinburgh and Glasgow.

Andrew Burns, executive member for transport at Edinburgh City Council, said the funding would assist with a bus scheme for west Edinburgh, a tram scheme for the north and a suburban rail service for the south.

Andrew Wilson: "Balanced choice"

Councillor Eric Ross, of Strathclyde Passenger Transport, said the investment would mean six more trains for the region.

He said: "The money will be spent significantly in the East Kilbride lines, the Ayr lines and the north electric services."

The Scottish National Party also welcomed the announcement but said Ms Boyack was "ill-equipped" to deal with problems caused by a lack of investment .

The party's transport spokesman Andrew Wilson said: "She lacks the financial powers to invest what everyone wants to see invested and she lacks the policy powers on railways to allow her to make a balanced choice.

"We need the minister to have full devolution powers over all transport issues and to have maximum financial powers so she can put some practical investment behind her good intentions."