Scottish government considering options over Borders rail replacement

The Scottish Government has said it is considering its options over a project to create a rail link to the Borders after a consortium said it intended to withdraw from bidding for the contract to build it.

Construction giant Carillion confirmed it would not be running in the contest to be the company responsible for building and maintaining the route, estimated to cost between 235 and 295 million.

The company was part of a consortium called IMCD bidding for the contract with partners Sir Robert McAlpine and Spanish firm Iridium Concesiones de Infrastructuras.

Government agency Transport Scotland said it was waiting for confirmation from the remaining consortium partners over whether they would also withdraw their intentions to bid.

A spokeswoman said: "The Scottish Government is committed to the Borders Railway project.

"We still await formal confirmation, however through discussions with IMCD it is clear they now intend to pull out of bidding as a consortium.

"Our requirements have always been clear and we carried out extensive consultation with the industry before embarking on the procurement process."

The railway link, due to open in 2014, will re-establish passenger railway services on a 30-mile stretch from Edinburgh through Midlothian to Tweedbank for the first time since 1969.

The former Transport Minister Stewart Stevenson cut the first sod on the route in March 2010, activating the Waverley Railway Act which commits the government to finishing the project.

Another consortium, New Borders Railway, pulled out in November last year after the loss of one of their key members - American firm Fluor.

Construction company BAM is the other remaining bidder out of three organisations invited to tender for the contract by the government.

The spokeswoman added: "If IMCD do confirm their intentions to pull out, we will have one bidder remaining.

"We have successfully delivered single tender projects before - the M74 which is due to open later this month ahead of time and under budget clearly demonstrates our ability to deliver.

"We will now consider our options to determine the best way to proceed to deliver the project for the best value and in the shortest possible time."

First Minister Alex Salmond said the railway will go ahead and pointed towards the completion of the M74 motorway extension.

During First Minister's questions in parliament, he said: "A single bidder in that completion of contract demonstrated the ability to bring forward a bid not just in time, being ahead of time, but also under budget."

The government announced on Tuesday that the extension was completed below-budget by millions of pounds.

Infrastructure Secretary Alex Neil said Transport Scotland's "robust" management of the works had delivered savings for the taxpayer.

The five-mile section of motorway comprising three lanes and a hard shoulder in each direction is set to open on June 28.