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Edinburgh decision

Councillors in Edinburgh have voted to continue with the tram project from Edinburgh airport to as far as St Andrew Square in the city centre and rejected calls for a referendum on its future. This is expected to be confirmed at the next meeting of council on 25 August, pending further information on costs, timescales and associated risks - and ahead of the 31 August deadline agreed as part of the mediation process.

The decision comes after a revised and independently verified business case for the project which demonstrated that, only by taking the line into the city centre, could a surplus of about GBP2M per annum - be delivered. The project which has been beset with problems that led to a dispute between tram company 'transport initiatives edinburgh' (tie) and contractor Bilfinger Berger. Although mediation talks are ongoing it is understood that the City Council will take over control of the project from tie in an attempt to break the deadlock.

1 July 2011

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