Tram line extension has £200m price tag

The extension of the Edinburgh tram line to Newhaven is expected to cost more than £200 million, it has emerged.

Councillors will begin examining the final business case (FBC) after a special data room was opened at the city chambers yesterday.

The project was initially estimated at £165m, with the FBC saying the extension can be delivered within a £196m budget. However recommended “optimism bias” of 6% takes this to £207.3m.

A final decision will be made when the case goes to council on March 14 with journeys expected to begin in early 2023 after six months of testing.

Council leader Adam Mcvey said: “We need to invest in our capital city’s continued success and deal with the growth of our population in a sustainable way.

“Edinburgh has a fantastic public transport network but we need to extend. As Scotland’s fastest growing city, things simply cannot continue as they are. The transport system must evolve to cater to a rapidly growing population.

“The FBC before us now is the result of work by the project team to produce a strong business case for taking trams to Newhaven which, crucially, does not divert funding from other council services.”

Edinburgh City Council says the project would be funded through future tram fare revenues and a dividend from Lothian Buses.

The public will be able to view the FBC after a transport and environment committee meeting on February 28.

Construction of the tramline began in 2007 and saw an eventual £776m bill, more than double the initial prediction.

The extension would provide a direct link from Newhaven and Leith to the city centre and out to Edinburgh Airport.

An Edinburgh tram.