Post by Bob on Aug 25, 2011 12:09:57 GMT 1
The ill fated Edinburgh tram scheme continues to rack up costs & is now set to go through the £1 Billion barrier.
Bosses overseeing Edinburgh's controversial tram project have admitted they had over-estimated the cost of cancelling the scheme.
The news comes on the day the city council will decide whether to borrow a further £231m to pay for the scheme.
A report published by the local authority warned repayments would cost £15.4m a year over the next 30 years.
Added to the original £545m budget for the project, it would take the full cost through the £1bn barrier.
In June, the cost of cancellation was said to be £750m and last Friday when the council's latest tram report was published, that figure had been cut to £670m.
It has now been reduced by another £19m, taking the cost of cancellation to £651m.
Councillors will also decide later whether to appoint Turner and Townsend to replace Tie as managers of the project.
Total repayments over the life of the loan will come to £459m, of which £228m is interest.
The route has also been cut back by 50% to try to contain the costs
Bosses overseeing Edinburgh's controversial tram project have admitted they had over-estimated the cost of cancelling the scheme.
The news comes on the day the city council will decide whether to borrow a further £231m to pay for the scheme.
A report published by the local authority warned repayments would cost £15.4m a year over the next 30 years.
Added to the original £545m budget for the project, it would take the full cost through the £1bn barrier.
In June, the cost of cancellation was said to be £750m and last Friday when the council's latest tram report was published, that figure had been cut to £670m.
It has now been reduced by another £19m, taking the cost of cancellation to £651m.
Councillors will also decide later whether to appoint Turner and Townsend to replace Tie as managers of the project.
Total repayments over the life of the loan will come to £459m, of which £228m is interest.
The route has also been cut back by 50% to try to contain the costs