West Midland transport officials remain confident they can secure Government funding for new metro lines despite the Transport Secretary's rejection of Liverpool's £325 million tram system.
The Government has now effectively granted planning permission for both Birmingham city centre and Black Country extensions to the Midland Metro Line One between Birmingham and Wolverhampton.
However, a final business case, seeking about £ 200 million for both schemes, is to be submitted by the end of the year.
A spokesman for the region's passenger transport executive Centro, which is responsible for metro schemes, said: "The Secretary of State's decision not to fully fund Merseytram underlines the importance of showing the Midland Metro expansion can deliver value for money and a positive return on the investment.
"Centro has been aware of the very strict criteria in drawing up plans and working very hard to keep costs under control.
"We are engaged in a range of measures to reduce the financial and development risks of the project and we have involved the Department for Transport in adopting this approach.
"When it gave planning approval for the two current Midland Metro extensions, the Government stated that funding approval would come through a separate process - and we are prepared for that."
Ironically, various lengthy delays to the Midland Metro extensions, plans for which were provisionally submitted to Government back in 2000, have helped Centro avoid a more recent reigning in of central government funding for light rail schemes.
The Merseytram crisis follows similar DfT rejections for a number of tram lines, including an extension of the popular and successful Manchester system.
However, Centro has been able to apply new Government thinking to its financial plans and believes it can satisfy its funding tests.
The Centro spokesman added: "At the time of the Government's provisional funding approval for Midland Metro expansion five years ago, it was evident that the prices quoted were before inflation and, unlike Merseyside, our approval was not capped.
"However, we would expect those cost limits to be applied when we submit the final business case for the phase one Metro extensions later this year.
"To progress the scheme it is very clear that we will need to convince the Secretary of State of our ability to keep the development costs under control and to show a positive benefit-cost-ratio that meets Government criteria."
Last week, Transport Secretary Alistair Darling said spiralling costs had forced him to withdraw Government funding for the long-awaited 11-mile link between Liverpool city centre and Kirkby.
He claimed Merseytravel wanted £238 million of taxpayers' money for Line One, £68 million more than the Government agreed three years ago.
But Merseyside officials claim to only need £204 million from the Government.
Meanwhile, Midland Metro expansion in Birmingham, with the city centre extension from Snow Hill to Five Ways, is also threatened by Birmingham City Council's Tory-Lib-Dem administration's insistence on completing a feasibility study into an underground line.
Last week The Birmingham Post revealed the scheme is likely to cost over £2 billion.