THE finalisation of a $1 million grant to build the first five kilometres of the Bombala end and first stage of the Monaro Rail Trail (MRT) was the start of "huge changes" for the town.

Monaro Rail Trail committee member John Nevin said the entire trail, if complete, would have significant economic benefits for Bombala, linking Queanbeyan and Canberra, to the Monaro.

"Imagine what this will be for the serious bike riders in Canberra who want to go on long training rides away from busy roads, along with recreational riders who like to go bike touring," he said.

"Not only will they have a great surface to ride on, but some good distance in beautiful surroundings."

Meanwhile, Mr Nevin, a keen road and mountain bike rider, said the construction of the first 5km of the trail, out of Bombala, would provide a significant 10km return sealed track for recreational riders, children, kids learning to ride, mums with prams and walkers.

Snowy Monaro Regional Council announced the finalisation of the $1 million funding agreement through the Investing in Our Communities program from the Department of Infrastructure, Transport, Regional Development, Communications and the Arts on August 2 and the project is now in the initial planning phase.

Starting immediately until mid-2025, Council will work on lease negotiations with Transport for NSW, environmental assessments and reports, as well as the necessary pre-construction surveying work.

The new bitumen-sealed path will begin from a trailhead next to Bombala Visitors Centre, proceed along Mahratta St to where the current rail line crosses Stephen St (Monaro Highway) then continue north within the rail corridor for 5km or as far as funding permits.

Delivery of the project will be completed over two phases, with final completion scheduled for October 2026.

Existing rail infrastructure at Bombala Station and along the rail corridor will be preserved or retained wherever possible. The trail will feature signage and seating to highlight local history and the landscape, enhancing the experience for users.

Phase two will run from mid-2025 to late 2026, and will see the construction of the trail itself and all associated infrastructure.

The MRT hopes the Bombala end of the trail will become part of a 214km trail which is proposed to start in Queanbeyan and cover the the disused rail line between Queanbeyan and Bombala, winding through scenic countryside that varies from mountain valleys to the high rolling Monaro plains.

Meanwhile, MRT Inc - which formed in August 2015 - will continue to work with Queanbeyan-Palerang Regional Council to seek funding to get the rail trail started at the northern end of Queanbeyan/Canberra.

Mr Nevin, along with fellow committee member Charlie Maslin, said the group was excited that the project had been funded and that work would start soon.

"We had hoped for 3km but we think we can go 5km with the funding we have received," Mr Maslin said.

"Queanbeyan is trying to get 30km at the northern end and we will all work together to get the two ends joined up in the middle.

"I think Bombala is in for a shock when it all gets going. There will be a huge impact and real changes for the town."

The grant for the rail trail follows a $50,000 grant under the Boco Rock fund which paid for updated signs showing Bombala's cycling trails and various upgrades.

"We really believe Bombala can be a great cycling town," Mr Maslin said.

Riders and walkers will take in stations and bridges, rail museums at Cooma and Canberra, be able to check out the well preserved Bombala railway station and the timber overhead pedestrian bridge which is one of few left in the country.

Mr Maslin said the Queanbeyan end would attract locals and Canberrans for day trips to Michelago, where refreshments could be obtained.

The next stop would be Bredbo (30 km) and Cooma is a further 35 km. The Nimmitabel and Bombala sections offer rural scenery and facilities for visitors. There is accommodation at Queanbeyan, Cooma and Bombala and cafes/hotels along the way.

Sections of the proposed Monaro Mail Trail will include Queanbeyan to Tuggeranong (14 km), Tuggeranong to Michelago (35 km), Michelago to Colinton tunnel (20 km),

Colinton tunnel to Bredbo (10 km), Bredbo to Chakola (17 km), Chakola to Cooma (17 km), Cooma to Coonerang (27 km), Coonerang to Nimmitabel (12 km), Nimmitabel to Jincumbilly (37 km) and Jincumbilly to Bombala (25 km).