Capital trams face 70 weeks' delay

EDINBURGH'S £512 million tram scheme was facing further problems last night after it emerged that completion of the project could be pushed back until November 2012 – 16 months later than expected.

The German construction firm at the centre of the dispute told The Scotsman it had repeatedly warned tram officials since last year that delays to earlier parts of the project would set back its schedule.

Sources close to the project claim that Bilfinger Berger, the firm heading up the consortium building the tram line infrastructure, has demanded an extra 70 weeks to finish its contract. The company said it had warned TIE, the City of Edinburgh Council tram firm, "many times" of major delays to a contract to move underground pipes and cables.

This utilities diversion work, which is being carried out by a separate company, is required before construction can start.

Bilfinger Berger has come under fire from politicians, business leaders and retailers over claims that it is seeking an extra 80 million, on top of the consortium's 240 million fixed contract agreed last May.

However, the firm denied the 80 million figure or that it had asked for an extra 70 weeks for the contract.

A spokesman said: "For months and months, we've been urging the client to speed things up because we saw the delay coming. We have to work strictly to the agreed conditions in the contract. Conditions are not as they are in the contract.

"Preparation (utility diversion] work was not finished. Many times we told them there was a delay. TIE was aware we would not start until all the contractual agreements had been reached."

The spokesman said of the current negotiations with TIE: "We are talking about money, but we did not lay any figure on the table. This is an important project for us."

He said a joint exercise involving TIE and the consortium had identified a "substantial overrun in time to the completion date".

Bilfinger Berger said utility diversion work at the tram depot site at Gogar was running eight months late.

A spokesman for TIE said: "We are currently engaged in discussions over the terms of the contract signed by the consortium. We would be very disappointed if confidential information is being put into the public domain by any members of the consortium."

The new revelations raised the stakes in the row triggered on Friday, when TIE and the council announced the 11th-hour call-off of work on Princes Street because of "unacceptable" demands for extra money from the consortium.

Graham Birse, the deputy chief executive of Edinburgh Chamber of Commerce, said the council had taken the "right stance" over the contract row, but said a quick decision was needed over whether to keep the Princes Street measures in place.

There was relief yesterday that the introduction of a host of diversions to accommodate the closure of Princes Street from Saturday had gone smoothly.

However, the capital's main business organisation gave the local authority a ten-day ultimatum to resolve the wrangle.

Nationalist MSPs have demanded that the roadworks, which involve traffic being diverted on to George Street and Queen Street, be lifted from today to prevent further disruption to retailers. But the council is insisting that the arrangements remain in place until the middle of next month.

Meanwhile, more than 4,000 people were yesterday said to have visited a mock-up tram that has arrived on Princes Street.

The council also released figures which, it said, showed "footfall" figures for key parts of the city centre had increased over the weekend, compared with the average over the past four weeks.

Of the tram wrangle, Mr Birse said: "It's very important to try to work through this dispute but if by the middle of next week there is no resolution then we would want the diversions to be removed."

But Ian McKee, SNP MSP for the Lothians, said: "The people of Edinburgh will simply not tolerate Princes Street being closed and no work happening.

"We strongly believe the best option is for the council to cut its losses and cancel the entire project before any more money is spent."

However, Jenny Dawe, the council leader, last night countered: "Our campaign to inform users of the city centre about new bus routes and traffic diversions also made it very clear that there is good pedestrian access to Princes Street and that the shops are open.

"I am also encouraged that, by the end of today, around 4,000 people will have visited the mock-up of the tram outside Jenners. The feedback from the public has been very positive and I am pleased that so many people are taking an interest."