Deal finally struck to get tramworks back on track

Published on Friday 20 March 2009 21:12

A RESOLUTION was reached to restart work on the £500 million Edinburgh tram project last night after 11th-hour talks secured an end to a three-week deadlock, which saw the city centre grind to a halt.

However, concerns were raised last night over the lack of detail provided on the deal, with calls for "real answers on the final cost and deadline".

Delays to the project had threatened to wreck both the Festival and the pre-Christmas shopping period as the negotiations looked poised to enter a prolonged phase of independent arbitration.

But the impasse between tram developers Transport Initiatives Edinburgh (TIE) and a construction consortium ended last night, after three weeks of heated talks between the city council firm and its builders, the InfraCo consortium – Bilfinger Berger, Siemens and CAF.

A deal to begin track laying work on Princes Street next week was signed shortly after 8:30pm. However, all parties remained tight-lipped over the precise nature of the agreement. It is not known exactly what day of the week work will now recommence.

And last night it remained unclear as to why the standoff ended, whether the council had agreed to pay the extra 80 million demanded by the consortium and if the controversial project would still open on schedule in 2011.

Shirley-Anne Somerville, an MSP for the Lothians, said: "Ending this dispute is a welcome step, but there are still many questions to be answered over this project. The last four weeks have disgraced TIE and the contractors and no-one should take pride in their actions.

"Edinburgh expects better and now we expect real answers on the final cost and deadline for this project.

"Crucially, we must be told the fate of Princes Street for the Edinburgh Festival and Hogmanay.

"It is time TIE got a grip of this project and the people of Edinburgh can get on with their lives with a minimum of disruption. This state of affairs must never happen again."

Festival bodies believe that a continued shutdown of Princes Street in August would be deeply damaging, but retailers in the city centre and in Leith are equally insistent that the work must not stop.

Last night, a spokesman for Media House, the firm which handles publicity for the tram project, was unable to say if the tramworks would be put on hold during the Festival.

However, a source close to the project told The Scotsman it would be "inconceivable" that work would continue during the Festival period.

Phil Hall, the transport convener for Edinburgh city council, said: "I am delighted to have reached this point. We can sort out other matters when the work is in progress."

Ron Hewitt, the chief executive of Edinburgh Chamber of Commerce, said the ripple effect of the delays may still hit traders up to Christmas and beyond.

"Everybody who has had a shopfront facing on to Princes Street – or the side roads leading to Leith Walk which have been closed – has had considerable difficulties as a result of this," he said.

"Something as destructive as this to the city centre will still have a knock-on effect for the pre Christmas trade."

He added: "All the way through this dispute there has been a distinct caginess about telling people what's going on.

"This (deal] comes as a very welcome surprise. We are delighted all parties have come to an equitable arrangement and that is the sole outcome we have been seeking for the past month – from the point of view of the retailers and the hospitality industry, this is entirely what is needed."

Jenny Dawe, the leader of the City of Edinburgh Council, said: "I am delighted with this outcome and look forward to the first sections of track being laid on Princes Street. The last month has been a frustrating period for everyone involved.

"Everyone concerned is now focused on delivering a world-class tram service to the people of Edinburgh and the millions of visitors who visit our capital city."

A spokesman for the BSC Consortium said: "We are pleased that agreement for Princes Street has been reached and look forward to progressing the works in a spirit of co-operation."

David Mackay, the TIE chairman, said: "I welcome (the] decision to proceed with the Princes Street section."