Edinburgh tram extension budget rises to over £207 million

(Credit: Edinburgh Council)

The cost of an extension to the Edinburgh tram lines has risen by 25% to £207.3 million.

The proposed 2.8 mile extension to Edinburgh’s trams would go from the city centre to Newhaven. The initial estimation was for a total cost of £165 million.

After a “thorough tendering process” the operation has been allocated a budget of £196 million and with a “significant additional risk allocation” of 6%. The total budget eclipses the previous estimation,  a 25% rise.

The council claims that the project will be funded by future tram fare revenues, with the projected number of passengers for the first year being 16 million. However, the original project to reintroduce trams to Edinburgh cost twice the original estimation and is subject to an ongoing inquiry.

The final business case was tested against previously completed tram projects by the University of Oxford’s Saïd Business School and they found the project is “more likely than not to be delivered within budget” but also recommend an extra £50 million to cover all eventualities.

The soaring budget estimate has had a mixed reaction from the public on Twitter:

The final business case is to be reviewed by councillors in March following the opening of a special data room in the City Chambers today.

Council Leader Adam McVey said: “All Councillors will be taking the opportunity to examine in detail the FBC and associated documents in detail so that we can collectively make as informed a decision as possible come 14 March. If Council moves ahead with this project, we’ll be working hard to make sure we deliver this project on time, on budget.”

Depute Council Leader Cammy Day said: “A tram to Newhaven would not only provide a direct link for the people of Newhaven and Leith to the city centre and out to the airport, but would connect residents and visitors to major employment and travel hubs along the route.

Construction is planned using a “one-dig” approach closing each site only once and opening only when all works are complete. This approach reflects on lessons learned from the previous tram project.”

 

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