John Baird, MP for Ottawa West-Nepean, said he is trying to get more money for the project and hopes to make an announcement early next year. (CBC)

Ottawa's light rail project could receive a funding commitment from the federal government early in 2010, says federal transport minister John Baird.

Baird said Wednesday there is already hundreds of millions available for the project, but he and other Ottawa-area MPs will "go to bat" to get more.

"Funds are tight but we believe…Ottawa's got to get its fair share," he added, responding to reporters' questions at an announcement about funds to renovate a youth services centre in Ottawa.

Baird, MP for Ottawa West-Nepean, said he and his colleagues hope to be able to make an announcement early in the new year.

On Dec. 18, Premier Dalton McGuinty announced $600 million in provincial funds for the light rail project — $400 million more than previous committed by Ontario.

The $2.1 billion first phase of the project includes 12.5 kilometres of light rail from Tunney's Pasture station in the west to Blair station in the east, with a 3.2-kilometre tunnel downtown. City council is scheduled to vote on the plan in January.

When asked if the new project was too expensive, Baird said Ottawa's municipal government must decide what's best for them. He warned that neither the federal nor provincial governments "are in the business of paying for cost overruns."

The federal government had committed $200 million to Ottawa's previous light rail plan, which had an estimated cost of $778 million. Baird withheld the funds during the 2006 municipal election and asked the new council to vote again on the project. The new council ended up cancelling the contract.