Tram project derailed yet…

trams

Edinburgh tram project is in a very troubling financial situation according to the spokesman of Tie, the company responsible for the works.

It is now £200 million over budget spent on the futuristic modernization of Edinburgh with the ‘rocket-like’ trams. The local MSPs express their fury about the loss of control over spending where the final cost of Edinburgh’s tram project could reach £750m – £250m more than originally planned by the date of completion in 2012.

Tie is of a different opinion however. They claim spending goes within the budget and that the city’s MSPs strongly exaggerate the figures and use the media to conduct discussions instead of asking direct questions to the Council and Tie themselves. The project managing company claim the programme is making good progress and is on track to be clear of Princes Street at the end of November as planned.

The project’s cost was originally estimated at £498m. Jenny Dawe, Edinburgh City  Council leader, said: “The funding situation and projected delivery date for trams running on the street has not changed since being reported to the council last month.

“The dispute resolution process is currently underway and both the council and Tie are committed to ensuring that we come in as close to budget as possible.

The MSPs also suggest there might be a significant delay in meeting the deadline and finishing the project by 2012 speculating it may even take until 2015 to complete all works.

Mandy Haeburn-Little, Tie spokeswoman, said: “Categorically there is nothing to suggest that the programme will extend beyond 2012 as had been stated publicly.

“The programme is making good progress and is on track to be clear of Princes Street at the end of November as planned.”

It all looks like a dispute between the Edinburgh political scene and the actual company producing the project. Taking both sides into account should one be worried?

On the Waterfront

waterfrontEdinburgh’s largest property development, the Waterfront Regeneration Project, which has suffered losses of £6 million will continue, vows the company behind it.

After facing financial problems caused by recession and bankruptcies of a number of investing companies the regeneration seems to be moving forward.

The regeneration project began in year 2000 with an idea of building 30000 modern flats a number of hypermarkets and a promenade in the area of Edinburgh’s Leith Docks and Granton. Waterfront Edinburgh Ltd, the main company behind the project vowed to build despite of a £6 million loss caused by the tough times of the recession.

Due to the chief executive of Waterfront Edinburgh ltd Colin Hunter there were too many luxurious flats built which were difficult to sell in the times of financial depression. Mr Hunter’s solution to the problem is to move away from the original master-plan and focus on larger affordable homes.

Mr Hunter said: “In times of economic turmoil, the public sector needs to step up to the mark and that is what we intend to do.”

“We have unashamedly set the vision high for Granton and we remain committed in our efforts to create a waterfront to any other in the world.”

He added: “The current economic climate has undoubtedly posed challenges for regeneration projects and the property and development sector at large.”

According to Edinburgh Waterfront Ltd reducing the cost of flats will speed up the process of selling them to the user and the quick sales bring some important dynamics to the overall result of finishing the project, meeting deadlines and making the consumer and local Leith/Granton community pleased with the development in their area.

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