The construction of stations at Ellenbrook,Whiteman Park,Malaga,Noranda and Morley will be the state’s biggest public transport project since construction of the Mandurah line.
The new stations will connect 21 kilometres of rail line in the north-eastern corridor to a redeveloped Bayswater station and onto the city.
More than 3000 local jobs are expected to be created and supported across the life of the project while more than 11,700 passenger boardings are anticipated on the line from the first day of operation and up to 18,070 daily boardings by 2031.
Transport Minister Rita Saffioti said the contract would be awarded later this year and that the government was conscious of delivering the project at the budgeted $1 billion.
“We're working to the budget that we set of around a billion dollars but we'll be releasing the final budget at the time of last contract signing,” Ms Saffioti said.
“We've been very careful in this market to negotiate the best outcome we can with the contractors.”