THE COST of Edinburgh's trams appears to have gone up again, as the contract was signed which will see the first tracks laid by September this year.
Trams firm Tie announced this evening that the lengthy negotiations with German and Spanish firms to supply the trams, tracks and other infrastructure had finally been concluded.
The final price agreed between all parties is £512 million - £
14m more than originally expected, and £1m more than reported in the Evening News on Monday.
Protracted contract negotiations and record low exchange rates for the number of euros to the pound have been blamed for the price rise.
Tie chairman Willie Gallagher 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."
City council leader Cllr Jenny Dawe added: "I am delighted that 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 for residents and visitors."
The first tram tracks will be laid in September this year, with the first tram set to run in Edinburgh in July 2011.
The full article contains 276 words and appears in Edinburgh Evening News newspaper.
