The first phase of St. John's bike plan is officially underway after the provincial government cut the city a cheque for almost $1.6 million on Thursday.

Under the first phase of the plan, the city will paint 43 kilometres of bicycle lanes. It will also install signs on 73 kilometres of roads without bike lanes designating them as bicycle routes.

The city will install bike racks on all its buses and create 20 new bike parking facilities.

Environment and Conservation Minister Charlene Johnson, Mayor Dennis O' Keefe and city Coun. Shannie Duff announced the funding Thursday.

"I am absolutely thrilled that the city is finally realizing its long-term goal of a cycling master plan, thanks in no small part to this financial support of the provincial and the federal governments,” said O'Keefe.

The plan will cost about $7 million and will be implemented over a 20-year period.

The city will start contributing money to the plan next year, said Duff.

"We have grant applications out to other areas for some other money," she said, adding the implementation of the plan will likely cost the city around $4 million.

Duff expects much of the work announced Thursday will be completed this year.

The funding announced Thursday comes from the Newfoundland and Labrador Green Fund, a three-year, $25-million fund set up jointly by the province and the federal government.