MISSISSAUGA, Ont. -- The Ontario government says it will spend $1.6 billion to build a new light rail line linking two Toronto-area cities in an effort to tackle congestion.

Transportation Minister Steven Del Duca says the Hurontario-Main line will have 26 stops between Mississauga and Brampton and will connect to existing transit lines.

He says construction is slated to begin by 2018, with service expected by 2022.

Money for the rail line will come from the $16 billion the province has earmarked for Greater Toronto and Hamilton Area transit and transportation projects over the next 10 years -- and so far the project comes with no federal funding.

A report released last week by a government-appointed panel examined Crown assets such as the LCBO, Hydro One and Ontario Power Generation to find ways to help fund the Liberals' infrastructure plans.

The province says roughly $4 billion from the sale of 60 per cent of Hydro One will go toward transit and other infrastructure projects.