Transport Minister Stewart Stevenson has signalled the way forward for the Waverley Railway to the Borders with the announcement of the preliminary timetable for the delivery of the project.

The project has now been handed to the national transport agency Transport Scotland to deliver in partnership with the rail industry. Market consultation and testing is already underway and will continue over the next few months prior to the official procurement process which is due to start by the end of this year. Work is expected to start on site in 2011 with completion around the end of 2013 and is estimated to cost in the region of £235 - 295m at point of completion.

Transport Minister Stewart Stevenson said: "The transition is a significant milestone and a defining moment in the evolution of this project. We remain committed to working closely with the three local authorities and look forward to the future with confidence.

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He added: "Procurement is a crucial phase of the Waverley Railway Project. Our market consultation exercise will set the parameters of the project for potential bidders and provide them with the information necessary to prepare the best tenders for this important transport scheme. It will also enable potential bidders to ask key questions before the procurement phase begins and we expect significant interest from a number of companies."

Dr Malcolm Reed, Transport Scotland Chief Executive, said: "This is an important project for Edinburgh, Midlothian and the Borders and we will continue to work closely with all three local authorities as well as in partnership with the rail industry to deliver this new railway on time and within budget and with the right skills and experience engaged, I am confident we will deliver."

The Waverley Railway (Scotland) Act 2006 received Royal Assent in July 2006. The line will serve a combined population approaching 200,000 in the Scottish Borders and Midlothian, a key mainland area in Scotland not currently served by a passenger railway. It will provide an effective public transport link to enable residents of the Scottish Borders and Midlothian to access important employment, education, health and leisure opportunities.

The reinstatement of the railway line between Edinburgh and Tweedbank in the Borders will allow both areas to maximise their economic development opportunities through tourism and additional jobs. The railway will also facilitate new and affordable housing. In addition, it will tackle congestion and assist in addressing Lothian's predicted labour market shortfall of 18,500 people by 2015.

(GK/JM)