A final decision on the construction of the tram from Edinburgh's Haymarket to Granton is to be made at the end of March 2009, following further analysis and investigations. This would allow construction to begin in July 2009.

An update on the proposed section of tram line, commonly referred to as 1b, is contained within a City of Edinburgh Council report published Friday. It will be discussed by Councillors at a meeting of the Full Council on Thursday.

The cost of building the 1b section of the tram system is £87m. The current budget for the Edinburgh tram project is £545m, with the section from the Waterfront to the airport costing £513m. Sources of extra funding are being explored, including unused monies from Phase 1a; a further contribution from the Scottish Government; and/or borrowing based on future revenues to be generated by trams and buses.

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Since the early summer, tie Ltd, Transport Edinburgh Limited (TEL) and the Council have been re-appraising the business case for Phase 1b. The work has looked at a fresh examination of the assumptions around patronage, development assumptions, revenue and operating costs across the board. This will continue to be reviewed in 2009 in the context of the wider economic situation, progress on funding, the delivery of Phase 1a and the strategic planning of the city's transport network

'Tramline 3', serving the south-east of the city, is also being explored. This would serve passengers from the city City Centre to Old College, Kings Buildings, Cameron Toll shopping centre; the New Edinburgh Royal Infirmary (ERI) and Bio-Quarter. It also provides an opportunity for greater connectivity by potentially linking with Border Rail, existing park and ride at Sheriffhall or through to Newcraighall or Musselburgh.

Councillor Jenny Dawe, Leader of the City of Edinburgh Council said: "Our ambition is for residents to enjoy a complete tram system, that takes them quickly to jobs, leisure facilities, home and shops across the city. We will keep pressing for the line from Haymarket to Granton, which would be a catalyst for further regeneration, and the much-wanted tram serving the south-east of the city."

(GK/JM)