Banks 'want to fund new Borders link'

BANKS and financial institutions are already expressing interest in helping to fund the reopening of the Waverley rail line from Edinburgh to the Borders, Transport Minister Stewart Stevenson told MSPs today.

The Scottish Government announced last week that the 35-mile Borders rail link would be financed through low-interest borrowing instead of a government grant.

And critics voiced fears that a "novel" funding system could mean fresh delays and uncertainty for the project, which is now expected to cost £295 million – twice the original price – and will not be started until 2011.

But during a debate in the parliament today, Mr Stevenson said: "Already we are seeing considerable interest in providing this funding."

He denied the "non-profit delivery" model was "untested", saying it had been used for schools projects in parts of Scotland.

Liberal Democrat MSP Jeremy Purvis called on the government to restore up-front capital funding for the project.

"So far the SNP have added confusion where there should have been clarity. They have added delay where there should have been progress."