Only £20m left in Edinburgh's £776m tram budget

Date: 24/4/2013

Transport authorities involved with the Edinburgh tram project insist the initiative can still be completed in line with the revised budget, despite there being less than £20 million left in the fund.

With the City Council revealing that £728 million of the £742 million base budget has been spent and only £5.3 million of the £34 million contingency fund remains, there are fears that money is becoming too tight ahead of the service's official opening next summer.

But given that road and track works are set to be completed up to three months ahead of schedule, experts have suggested that the funds may have already been appropriately allocated.

Simon Johnston, editor of Tramways and Urban Transit magazine, told the Scotsman that the £20 million left in the budget could be enough to cover the final costs as more expensive infrastructure work has been paid for.

And with business leaders having been assured that progress on the line's completion could advance more quickly than expected, there are even hopes that the opening date may be moved forward.

Transport Convener Councillor Lesley Hinds explained that irrespective of the amount of money left in the budget, the project continues to be in line with revised costs and will be ready to operate as planned.

"You only have to be out and about in Edinburgh to see the progress being made and I’m pleased to report that by June much of the road and track work will be complete. This means we can push on with a significant programme of work to install overhead and underground cables," she added.

Once completed, the tram network faces the prospect of running at a loss for the first five years as the authorities look to cover start-up costs and support the service, with Edinburgh City Council setting aside £3.2 million a year to address any shortfalls. 

Posted by Sarah Bailey

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