The Scottish Government will help oversee the final delivery of the Edinburgh trams project it was announced today.
Ministers confirmed that the remaining £72 million Scottish Government grant will be reinstated to the project now that the route to St Andrew Square has been similarly reinstated.
Significant challenges remain in completing the Haymarket to St Andrew Square section of the tram line. The Scottish Government remains concerned that there are more than 700 separate instances where utilities may remain in conflict with the project design – some even after they were diverted as part of the earlier utilities diversion works contract.
“The Scottish Government did not back the trams project when Parliament voted on it in 2007, and we share the frustration of many people in Edinburgh over the way the scheme has developed since then," said Cabinet Secretary for Infrastructure and Capital Investment Alex Neil.
“We made it clear two weeks ago that we were no longer prepared to commit further public money to a route which was not financially viable and which did not deliver the link to the city centre which people rightly expected... However, now that that link has been reinstated, it is vital that the remaining stages of the trams project is delivered on time and within the £776m budget that we are advised by CEC is needed to complete the route to St Andrew Square by Summer 2014.”
Neil announced that a team of 4 or 5 experienced project managers from Government agency Transport Scotland will fill key senior roles in the new governance structure with City of Edinburgh Council.
TS Director MTRIPS Ainslie McLaughlin will be on the new project Board and TS staff will work alongside CEC staff in key senior roles, in the same offices as CEC and the contractor, working in partnership to ensure that problems are indentified quickly and solutions found to avoid the approach under previous TIE ltd regime that saw the contract blighted by disputes.
As part of the agreement with the City of Edinburgh Council, Ministers will have the power to direct strategic project decisions.
“Ministers will receive regular updates on the progress of the project, and will also retain a veto over strategic decisions in respect of remaining Government funding," said Alex Neil.
“We must make sure that we work as closely as possible with those who will be affected and make sure that the impact of the work is minimised for Edinburgh businesses and communities.”
The move builds on the agency’s involvement with the Council in mediation discussions which have been ongoing since earlier this year and which have resulted in an expected settlement being reached later today between CEC and its contractors Bilfinger Berger/Siemens.
The City of Edinburgh has calculated that the overall budget for the curtailed line from Edinburgh Airport to St Andrew Square is now £776m, comprising of a base budget of £742m and a risk allowance of £34m.
This increase of £231m above the original project budget of £545m will be funded through the Council’s prudential funding facility.
In a statement, Council Leader Cllr Jenny Dawe, said that both parties had agreed that the new arrangement would be "beneficial".
"We have a joint interest in ensuring a clean, green and efficient transport network is delivered in Edinburgh and our new working arrangements are a logical extension of the discussions we have had with them," said Dawe.
Chief Executive Sue Bruce added: "As we move closer to a settlement agreement, the delivery of Edinburgh Trams remains the Council's responsibility and we are putting in place new arrangements to ensure that there is the best possible governance and operational oversight of the initiative. That will be complemented by the technical, project management expertise, and experience that Transport Scotland offers and I am very pleased to welcome their involvement."