Edinburgh City Centre Tram 'Back On Track' After Decision Overturned

Edinburgh City Centre Tram 'Back On Track' After Decision Overturned

PRESS ASSOCIATION -- Edinburgh's trams saga has taken another twist after councillors overturned their shock decision to stop the line short of the city centre.

The U-turn means the plan to take trams from Edinburgh airport to St Andrew Square in the heart of the New Town is back on track.

Officials estimate that the line can generate an annual profit of £2 million but will require a £231 million loan to complete.

Friday's decision follows the surprise vote last week to stop construction at Haymarket, west of the city centre. Councillors were told that route would mean paying an extra £4.8 million a year for 30 years. The Scottish Government intervened after the Haymarket vote, saying it would withhold £72 million from its agreed £500 million contribution.

Councillors were given until 5pm on Friday to hammer out a deal, otherwise contractor Bilfinger Berger could find them in breach and terminate the contract.

It took councillors around three hours to come to a decision, voting 28-15 in favour of the ruling Liberal Democrat motion to pursue the line to St Andrew Square after four rounds. The motion was carried as a result of a U-turn by SNP councillors who had abstained in the last meeting, allowing Labour's Haymarket proposal to pass with Tory support.

The Tories again lodged an amendment to tear up the tram contract and re-tender it, despite an estimated £160 million cancellation cost. Their motion was defeated in the second round.

The decision authorises council chief executive Sue Bruce to enter a settlement agreement with the contractor on "an unconditional basis as to funding". This means the council expects the additional funding needed to take the line to St Andrew Square to remain within the £231 million envelope. But costs could still rise further.

Ms Bruce said: "What we now have to do is go away and first of all speak to the contractor to confirm that funding sources have been identified, and to seek to extend the time from 5pm tonight for another week or so to try to get the contract details nailed down. Also, I would want to go back to Transport Scotland and the Cabinet Secretary to see if the decision that the council has made will be sufficient for them to reinstate funding."

Edinburgh council leader Jenny Dawe said "everything has been done to make these figures as accurate and as good as possible". She said the agreement could see trams running to the city centre by 2014.

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