The Department for Transport has awarded a further £11m towards a £30m transport improvement programme in Lincoln.
The Lincoln Transport Hub scheme will improve transport facilities in the city including the provision of a new bus station, retail units, a pedestrian plaza and a 1,000-space multi-storey car park.
The scheme will be delivered by the city council in partnership with the Department for Transport, the Greater Lincolnshire Local Enterprise Partnership, Lincolnshire Co-op and Network Rail, working with East Midlands Trains and Lincolnshire County Council.
Willmott Dixon is the main contractor for the project and will now begin work on site by the end of August.
The new facilities are expected to open by January 2018.