Work can start on the A$2bn redevelopment of a large derelict tract of Perth after the state Government yesterday signed off on the final planning approval for the Northbridge Link project, giving the green light for private-sector investment.

Premier Colin Barnett said the commercial, residential and entertainment project was fundamental to the development of Perth city, once dubbed Dullsville because the CBD empties out at the close of business because of a lack of city housing.

But the Government has not yet secured A$132m from the commonwealth's Building Australia Fund to help pay for sinking a section of the Fremantle railway line, which separates Perth from the Northbridge entertainment district.

The Australian