Total bill for trams project to hit £550m

Published on Thursday 1 October 2009 10:00

THE Evening News can today reveal that the official cost of Edinburgh's troubled tram line has gone up by millions of pounds.

Documents seen by this newspaper put the current estimated cost at 524.5m – PLUS whatever tram firm TIE has to pay out to the contractors it is currently in dispute with.

That represents an increase of at least 12m, with the total bill now almost certain to exceed the 550m mark.

However, the bill could soar yet further, with German firm Bilfinger Berger believed to be looking for an extra 80m to 100m from the project.

The figures – contained in a briefing document tram firm TIE prepared for Edinburgh council – emerged after SNP Lothians MSP Shirley-Anne Somerville said sources had told her the project could now cost as much as 750m, a claim fiercely contested by TIE.

Richard Jeffrey, TIE's chief executive, today likened rumours surrounding the cost of the controversial project to conspiracy theories about Elvis Presley and said 2012 was a "a realistic and achievable date" for completion.

Who do you Believe? Jenny Dawe? Or Shirley-Anne Somerville? Click here to vote

But critics said predictions that the project could be delivered for under 600m were "absolute fantasy."

Mr Jeffrey said: "We are very disappointed that politicians continue to use the project as a political football. This sort of thing takes up a huge amount of our management time that could be better used. Unsubstantiated speculation is totally unhelpful. It's damaging to us, it's damaging to Edinburgh and to Scotland. It has the same credibility as saying, 'someone I know knows where Elvis is living'."

Yesterday, council leader Jenny Dawe accused Ms Somerville of "scaremongering" after she said sources close to the project had told her the final bill could be between 650m and 750m.

However, suggestions that the project could be brought in close to budget were today rubbished by one critic. John Carson, a former director of maintenance for Network Rail, said: "It's not even wildly optimistic – it's absolute fantasy.

"This bill is not something that is going to be sorted out any time soon, it's headed for the law courts. You will get someone like Richard Jeffrey in around 2020, coming out and saying the eventual cost of the Edinburgh tram project has been 1 billion. Richard Jeffrey is living in cloud cuckoo land. He should be sitting down with Bilfinger Berger and getting them to re-price the whole job."

Meanwhile, it emerged transport minister Stewart Stevenson has not met Edinburgh council to discuss the project for a year.

In a parliamentary answer, Mr Stevenson, who oversees Transport Scotland, the Scottish Government agency which is providing 500m of funding for the trams, told MSPs the project was "entirely" a matter for the council.

He added: "It is important that members understand that the project is an Edinburgh City Council project and that it is for the council to complete it."

SOMERVILLE TOLD TO 'PUT UP OR SHUT UP'

POLITICAL opponents of Shirley-Anne Somerville today told her to "put up or shut up" after she claimed that the city's tram project could cost up to 750 million.

The SNP MSP for the Lothians said the tram project was now "effectively out of control" after sources close to the project had told her the final bill was set to soar.

But David McLetchie, Tory MSP for Edinburgh Pentlands, said: "Shirley-Anne Somerville has to put up or shut up. If she is so confident about what she is saying, then surely she should reveal her mystery sources and justify her figure.

"However, there is no doubt she is capitalising on a lack of transparency from both Edinburgh Council and TIE about the true costs of the tram project.

"They continue to refuse to answer questions on the grounds of commercial confidentiality, which is grist to the mill of the rumour mongers and gives them a free hit."

Alison McInnes, the Liberal Democrats' transport spokeswoman, added: "We've had a catalogue of unsubstantiated complaints from Shirley-Anne Somerville. She seems determined to undermine this project. This needs to stop.

"All we get from the SNP are rumours and scaremongering from the backbenchers and a deafening silence from the transport minister."

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