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Final contracts awarded for Edinburgh Tram

A September start is expected for construction on Edinburgh tram tracks after contracts were finalised by tie(transport initiatives edinburgh) Limited and the City of Edinburgh Council yesterday.

Belfinger Berger Siemens have been awarded the contract for the tram infrastructure, which includes the laying of the tracks, controls and substations. CAF have won the contract to supply the trams.

After lengthy contract negotiations, the BBS consortium have been provided with incentives so as to secure the delivery of the project through key milestones based on programme and cost. BBS have also accepted an additional transferral of risk from the public to private sector.

The final price agreed between all parties is £512 million, which is a rise of 2.8% on the price forecast in the Final Business Case and remains within the funding envelope of £545million set for the Edinburgh Tram Project.

Leader of the City of Edinburgh Council, Cllr Jenny Dawe said: "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 additional means of public transport for residents and visitors."

Managing Director for Siemens Transportation Systems UK, Christian Roth said: "Siemens has a proven track record in the international light rail market for delivery and integration of infrastructure on time and to budget. We will be working hard with tie and our consortium partner Bilfinger Berger to deliver the technical elements of Edinburgh Tram’s infrastructure including communications, control and signaling equipment, electrification and substations, as well as parts of the track structure itself."

Trams are scheduled to start running in July 2011

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