The Trams for Edinburgh moved a further step forward this week with the signing of contracts to enable the infrastructure to be constructed and also the construction of the trams. Both companies are from mainland Europe with the trams coming from CAF in Spain and the construction contracts going to Bilfinger Berger Siemens of Germany.
The final price agreed for the project has now risen to £512 million - £14 million higher than was originally planned for. The rise has been put down to the record breaking exchange rate between the pound and the euro and also because BBS wanted more money up front to take on more risk for the project. However, this £14 million comes from the contingency fund which was already part of the plan and was exactly why it was there in the first place (not that stops the whingers in Edinburgh from having a go).
Willie Gallagher, Executive Chairman of tie, said: “I'm pleased that these negotiations have now reached a successful conclusion. These pressures on costs are not isolated to the tram project. The fact is that every major construction project in Scotland and in the UK is and will be impacted by these exact same factors. We have sought to successfully deal with them now. From the start of the procurement process my team set out to drive a fair and hard bargain. We look forward to building the Edinburgh tram project on time and on budget."
The first tram tracks in Edinburgh should be on the ground by September this year with the first trams operating in July 2011 (this has slipped from the original plan of February 2011).
Cllr Jenny Dawe, Edinburgh City Council leader, commented: “am delighted the intricate and tough negotiation period has reached a satisfactory conclusion. This has not been easy, particularly in the prevailing global economic situation, but I am confident we have a fair deal. We are now well on our way to delivering an excellent tram project for Edinburgh that will connect vital growth areas in the city and provide a first class modern, attractive and additional means of public transport."
Source: The Scotsman