Edinburgh council officials have turned to the UK Government’s National Wealth Fund to advise on the next phase of tramworks as support has not been forthcoming from the Scottish government.
The city council says a north-south line from Granton to the Royal Infirmary would cost of up to £2.9 billion and officials are exploring other avenues, including a public-private partnership.
The Labour government set up the National Wealth Fund with access to £28bn soon after coming into office to provide support for major infrastructure and other projects.
Edinburgh council stressed the fund’s initial role in the tram project was purely advisory.
Scottish Government Transport Secretary Fiona Hyslop last year questioned the business case for the tram extension, saying it was “not affordable in the current fiscal climate”.
The public consultation on the council’s proposals ends next Monday and the its transport convener Stephen Jenkinson said advisory support from the National Wealth Fund “will form part of the Strategic Business Case which will be presented to committee in due course”.
He added that council tax payers will not be asked to directly fund the tram works and the question about how the project will be funded will be answered at the appropriate time.
The National Wealth Fund has recently established a “strategic partnership” with Glasgow City Region to help bring about the Clyde Metro, which aims to create a fully integrated mass transit system including bus, light rail, heavy rail and tram-train.
The fund said it was using its expertise to develop funding strategies, identify cost-saving opportunities and strengthen governance and accountability of the project.
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