An elected Liberal Party will extend the Lake Wendouree heritage tram tracks to Durham Point, committing to funding a feasibility study.
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The $4 million promise joins a previous $27 million Liberal announcement for the Gold Pavilion and new entrance at Sovereign Hill.
Another $3 million will pay for the second stage of the Ballarat Botanical Gardens' gothic fernery, which is currently awaiting a heritage permit.
The Ballarat Tramway Museum recently upgraded the existing tram tracks around the lake in partnership with the state government, after reopening its new and improved museum facility.
Currently, the tram tracks extend from Carlton Street to about St Aidans Drive - the plan would be to extend the tracks by about one kilometre.
Liberal candidate for Wendouree, Samantha McIntosh, told reporters on Wednesday she was pleased to see movement on a project after 20 years of lobbying.
"It is about making sure that there is greater economic opportunity for our tourism businesses, and that there is a wonderful product for our visitors," she said.
"There is so much that can be sold and told about our spectacular lake, its wonderful heritage and the great opportunities that it will provide.
"I know people have loved seeing stage one of the Gothic Fernery being delivered on the ground, and I know they will look forward to this next stage of reconstruction in that particular site."
Ballarat Tramway Museum president Paul Mong said it was a great opportunity to expand the work already completed with the museum.
"We've replaced over one-and-a-half kilometres of track and with modern standards to the same as Melbourne, the world's best tramway - this gives us the opportunity to really sell the place, the lake foreshore to the museum," he said.
"We've got a beautiful fleet of trams that we can display, operational, including the only restaurant tram in Victoria, an operating blue restaurant."
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