The Edinburgh tram project could cost over £830 million to be partially completed, it was revealed yesterday, 19 August 2011.
A report, which will go before councillors on Thursday 25 August, has recommended that the project – which was originally supposed to run from Edinburgh airport to Newhaven – should only be completed two-thirds of the way. This would mean that the line would run to York Place, in the city centre.
Dave Anderson, director of city development at Edinburgh City Council, has suggested that the council should borrow money to complete the tram-line building works, with the money being paid back over 30 years. He does not say where the money will be borrowed from. The suggested borrowing amount is £231 million. This will take the cumulative revenue charge with interest to £291 million.
The original plans for the tram scheme predicted the cost as £545 million for the airport to Newhaven route.
Gordon Mackenzie, the council's transport convener, has asked councillors to deliver ‘a clear decision’ on the project`s future to provide certainty for residents and businesses.
He said: "Despite the extra cost, the current council have a strong record of balancing the budget while improving services and I am confident that will continue.
"The significance of the tram to the city's future economy is often overlooked because of the problems we have experienced but Edinburgh needs the council to make decisions that look to the long-term, not just the next election, and that means going to St Andrew Square in the first phase."
The cost of scrapping the project altogether is estimated at about £725 million.
New consultant takes over for Edinburgh tram project
It was reported on 18 August that private company Turner & Townsend has been appointed to manage the troubled tram project.
The international consultant has pledged to deliver the project "in the most cost efficient manner possible".
The project was previously handled by the council’s own project management firm, Tie. It was formerly called Transport Initiatives Edinburgh.
Edinburgh Central SNP MSP Marco Biagi said in the Daily Record: "Tie has been a disaster from start to finish and I'm pleased to see the council recognising that fact.
"It is obviously disappointing for those staff working for Tie but after the clear failure of senior management at Tie to keep the project on track the company could not be allowed to continue.
"Tie have delivered nothing but chaos to Edinburgh and it is time for the entire city to move on."
Ishbel Macleod - Ishbel Macleod is a journalist from Glasgow, Scotland. She is a reporter for a media and marketing publication. She previously ...
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