Council aiming to get trams running next year despite debts and disputes

Published on Friday 18 June 2010 22:57

EDINBURGH'S trams may start running as early as next year under plans to roll out the scheme in phases despite the city facing a funding black hole of almost £85 million.

Transport leaders in the city believe an initial phase linking Edinburgh Airport and Haymarket railway station could be completed by the end of 2011.

Even if a contractor it has been at loggerheads with is dropped from the project, they believe the first phase could be completed next year.

Finishing the first part of the tram network at Haymarket may even be agreed between the city council's tram firm TIE and the German outfit Bilfinger Berger as part of any "divorce settlement".

The Scotsman revealed yesterday that the council had admitted that some sections of the planned route may be rolled out at a later date due to funding concerns. Transport leaders have previously admitted that the entire route was unlikely to be finished until 2013.

New figures reveal that the council has banked just 16.4m for the scheme, which is now set to cost at least 600m, yet has been given just 500m in funding from the Scottish Government.

Critics made fresh demands yesterday for the council to stage a referendum on whether the entire project should be scrapped – despite estimates that 480m will have been spent on it by early next year. But the city's tram firm is insisting good enough progress is being made on the route from Edinburgh Airport to Haymarket that could allow the first phase to be completed in the next 18 months.

A new report for the council has warned that the costs of the project may have to rise from the previous estimate of 545m to 600m, with further increases likely if a bitter dispute with Bilfinger Berger is not resolved quickly.

Just 5.7m has been paid by developers along the full airport-Newhaven route, well short of the 25.4m expected when the council put together the business case for the trams. The level of developer contributions has been hit badly by the economic downturn, and officials have warned there is a risk that the full amount may never be realised.

Gordon Mackenzie, the city's transport leader, insisted the council was still committed to delivering the full tram route, and pointed out that any options for phasing would have to be negotiated with either the Bilfinger Berger-led consortium or any new contractors that are brought in.

He told The Scotsman: "It is still possible that we may see the trams start next year and launching an initial phase between the airport and Haymarket is being looked at.

"There has been reasonably good progress with the infrastructure works on that section and even if there is any kind of split with Bilfinger Berger, it could be part of the agreement that the section is finished.

"Even if there is an amicable resolution with Bilfinger Berger, an initial phase could be launched, but that would have to be negotiated and agreed as that is not in the original contract."

SNP MSP Shirley-Anne Somerville said: "There are still no clear answers on when this project is going to be finished and how much it is going to cost. I don't think it's too late to scrap it at all."