Last-minute talks to secure St Andrew Square tram deal

Last-minute talks were taking place today on a formal agreement to continue the tram project to St Andrew Square.

By The Newsroom
Wednesday, 14th September 2011, 6:14 pm

City council chiefs have set a deadline of the end of today to finalise a “settlement agreement” with the construction contract headed by German firm Bilfinger Berger.

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The agreement is supposed to include certainty on how the work will be funded by the council, but the Scottish Government has still not confirmed if it will reinstate £72 million withdrawn after councillors voted to end the line at Haymarket.

The lack of confirmation has led to fears the council, which is already borrowing to cover £231m of costs, may have to go even deeper into debt. It has also sparked calls to put the agreement on hold until clarity is provided on funding.

Councillor Andrew Burns, leader of the Labour group, said: “There should be confirmation from the government before any contract is concluded.”