An eleventh hour resolution has been brokered in the dispute that halted work on the Princes Street section of the Edinburgh Tram Project. Work on laying the track on Edinburgh City Centre's main street was due to start a month ago, but it was halted after a disagreement between the tram project manager, tie Limited, and its contractors erupted over additional costs of between £50m and £80m.
The City of Edinburgh Council put out a statement earlier today saying that all the parties involved in the contract, the Council, tie Limited and the InfraCo consortium, (Bilfinger Berger, Siemens and CAF), are satisfied with this outcome and can confirm that full works will begin next week.
There was consternation that details of the agreement were not provided, however, Jenny Dawe, Leader of the City of Edinburgh Council, said: "I am delighted with this outcome and eagerly look forward with anticipation to the first sections of track being laid on Princes Street."
Dawe added: "The last month has been a frustrating period for everyone involved, not least the people of Edinburgh... I would like to thank the people and businesses of Edinburgh for their overwhelming support and incredible patience over the past month."
A spokesman for the BSC Consortium said: "We are pleased that agreement for Princes Street has been reached and look forward to progressing the works in a spirit of cooperation."
David Mackay, Chairman of tie Limited, said: "I welcome today's decision to proceed with the Princes Street section and I have very much appreciated the full support of Council Leader Jenny Dawe on behalf of CEC."
The day that the tram works will start next week was not announced. A decision also still has to be made on whether Princes Street will open for the Festival in August and Edinburgh's Hogmanay as planned earlier.