Auditor gives thumbs-up to tram scheme

 
Edinburgh’s £600M tram scheme has been given a seal of approval by Scotland’s auditor general. Although Robert Black has warned that any further delays may result in the 2011 deadline not being met.
The Audit Scotland report, released on Wednesday, also found that the capital’s ambitious underground airport rail link was unlikely to be completed by its deadline of 2011.
The new Scottish National Party administration, which has long-campaigned against the tram project, asked Black to produce the feasibility report. Its findings are likely to undermine the SNP’s case.
Black assessed whether the projects were progressing in accordance with time and cost targets, and whether appropriate management systems were in place to promote their successful completion. He did not review operating costs or projected revenues.
The final cost for the first phase of the tram project, which connects Leith Waterfront to Edinburgh Airport via Haymarket and Princes Street (phase 1a), and a section from Roseburn to Granton Square (phase 1b), was £593.8M. Estimated costs had been subjected to ‘robust testing’ and there was enough money to complete phase 1a, the report said.
There was a clear corporate governance structure, involving key stakeholders, which made the project more ‘sound’. The project was organised, it had a risk-management plan in place, and had a clear procurement strategy aimed at delivering successful outcomes, it found.
However, the project was nearing a ‘critical phase’ leading up to early 2008, when the Cabinet was expected to approve the business case.
Amid the current debate and uncertainty about the project’s future, utilities diversion work has been halted. ‘In such circumstances, delivering the project to time becomes more challenging the longer work is delayed,’ the report said.
The tram project was in stark contrast with the airport rail link (EARL), where ‘lack of agreement over governance arrangements and a procurement strategy is inhibiting progress’.
Finance secretary John Swinney said the report raised a number of serious concerns about governance and development issues. He will present the outcome of his assessment of the projects to parliament next Wednesday.
City of Edinburgh Council’s transport spokesman, Cllr Phil Wheeler, urged first minister, Alex Salmond, to make a swift decision to continue with the tram project.

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