Dumping Edinburgh tram project could cost £750 million
The cost of scrapping Edinburgh’s tram project is estimated at £750 million.
Airport news for Travel,Edinburgh on 23/06/2011.
Dumping the Edinburgh tram project is likely to bring the total cost for the scheme to approximately £750 million, says a leaked report. The report also estimates the cost of completing the tram line between Edinburgh Airport and Haymarket would bring the project’s cost to £700 million.
According to the official report, it would cost about £770 million to build the line up to St Andrew in the centre of Edinburgh. Councillors are to rule on the project’s fate in a meeting next week.
The project’s cost was originally put at £545 million, which was supposed to cover the budget needed to build the tram line through the centre of Edinburgh, and out to Newhaven, north of the city. However, tram firm Tie and its contractors Bilfinger Berger have been locked in a contractual dispute that has led to the project going over budget and running behind schedule.
Tie and Bilfinger Berger held initial talks in March. Following that meeting in Glasgow, it is understood that mediation talks are continuing. Edinburgh City Council published a report in May that said some 80 per cent of the original budget – about £440 million - had already been spent on the work already performed, which still left large sections of the planned line unfinished.
Edinburgh city councillors instructed officials to produce a report estimating the cost for scrapping the project. The report was due to be published today but the figures were leaked yesterday.
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