Plans to construct a new £139 million road tunnel under the Tyne River took an important step forward today when Tyne Wear Passenger Transport Authority (PTA) decided to press ahead with an application for the powers needed to proceed.

Yesterday's meeting in Newcastle also approved guidelines to buy properties near the scheme which links Jarrow and Howdon.

The PTA wants to commission the construction of an immersed tube tunnel aimed at improving access to job opportunities for communities on both banks of the river, by effectively completing the dualling of the A19.

The existing road tunnel carries both northbound and southbound traffic and was designed with a capacity of 24,000 vehicles a day. It presently carries 36,000 vehicles a day, resulting in congestion and delays.

The new crossing will be financed and constructed by the private sector which will also operate all the tunnels, including the Grade II listed cycle and pedestrian tunnels.

Tenders for the contract are expected to be invited in October this year and the concession contract is expected to be awarded in December 2003, with construction beginning the following spring.

If everything proceeds as planned the new tunnel should open in May 2007.

Once the application is made there will be 42 days for individuals and groups to send in letters of support or objections. The plans will be available at local libraries and public buildings in North Tyneside, South Tyneside and Newcastle, with a series of exhibitions planned as well.

It is expected that the Secretary of State will call a public inquiry later this year.