All the parties involved in the contract, the City of Edinburgh 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.
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.
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"The last month has been a frustrating period for everyone involved, not least the people of Edinburgh, and it's great news that the consortium and tie Limited have finally been able to resolve the outstanding issues."
Ms Dawe said everyone concerned is now focused on delivering a "world-class tram service" to the people of Edinburgh and the millions of tourists who visit.
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, added: "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."
(GK/JM)
