The Department of Infrastructure says it hopes to submit a planning application for a £20 million project next month.
The DOI has detailed designs for the regeneration of Douglas promenade which it will submit with its application.
The entire length of Douglas promenade from Strathallan Crescent to Peveril Square is to be rebuilt - the work will include replacing horse tram tracks.
The department hopes to start work next September to improve traffic flow, footpaths and utilities.
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