THE tender process for the £295 million Borders rail link is set to begin by the end of the year.
Finance Secretary John Swinney said paperwork was being finalised to allow the formal announcement of Transport Scotland's intention to let the contract before Christmas.
Mr Swinney said the recent economic slowdown had meant it had been necessar
y to carry out further marketing testing before launching the tendering process.
He said: " This data has provided the necessary assurance that economic conditions are now favourable to run a procurement exercise and I look forward to the formal process getting under way before the end of this calendar year.
"This Scottish Government has always made its commitment to this vital public transport link clear. Providing a fast, efficient link connecting communities in the Scottish Borders and Midlothian to Edinburgh will be a significant catalyst for economic growth in the region."
Local MSPs had raised questions about the Scottish Government's commitment to the project following the decision to axe the Glasgow Airport rail link in September.
Formerly known as the Waverley line, the Borders rail link has been on the agenda since 2000, when the Scottish Parliament voted to restore it, but has been repeatedly delayed.