TRAMS will be running through Leith to Newhaven in the Scottish capital within five years under plans to go before councillors next month.
It is expected Edinburgh City Council will recommend accepting the initial case in principle to take the tram line from York Place across the north of the city, part of the original plan for the transport system.
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Councillors will scrutinise the feasibility of taking Edinburgh Trams to Newhaven, with the estimated cost of the project, now including construction costs, risk and inflation, at £165.2m.
If this is approved, more detailed examination of the business plan including examining contractor tenders will be carried out in the next year.
The decision on whether to proceed and with which contractor would then be made in autumn 2018, "giving the green light" to the project, council leader Adam McVey said.
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This will only be done if the £5m exploratory programme shows a "robust" case, he said.
Mr McVey said: "We want a lot of time to go through it so we end up with a tram extension on time and on budget and that people can have confidence in."
The first tram project was dogged by delays and arrived £230m over budget and three years late.
A report will be considered by the transport and environment committee on September 4 and then by the full council on September 21.
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The report will set out the case for completing line 1A from York Place to Newhaven and seek approval in principle for the outline business case (OBC) and authority to "enter into a procurement exercise to identify a potential contractor for the project".
The council said that if the project goes ahead, the construction will take approximately three years and, allowing for testing, passengers could expect to use the service in the first half of 2022.
The business case forecasts patronage on the trams to double in the opening year to 13 million while Lothian Buses is projected to continue to perform strongly.
The document also states that a business compensation scheme would be introduced for local traders during construction.
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Mr McVey said: “As the fastest growing city in Scotland, and with our existing system nearing capacity, we have to look at ways of enhancing our public transport system.
“The planned tram extension route takes in Scotland’s most densely populated area and, taken with low car ownership, developing high capacity transport to Newhaven would bring a range of local benefits in terms of boosting economic growth, creating jobs, enhancing accessibility, reducing congestion and improving air quality.
“We’re now working to make sure that the business case is as robust as possible to ensure we have confidence that the project can be delivered on time and on budget.”
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Lesley Macinnes, transport convener said: “Only yesterday, we were named the UK’s best city for transport links, demonstrating the success of our continued work to deliver a truly integrated public transport system for the capital.
“We cannot be complacent, though.
"We must ensure we keep investing in public transport and sustainable travel, both to cater to ever greater numbers of residents and visitors and to improve our environment.
"The outline business case demonstrates good early performance for the tram, with patronage expected to double in the first year.
Herald View: New Edinburgh tram plan must learn lessons of past debacle
"Crucially, however, it also shows Lothian Buses continuing to operate at the high standard of service we’ve come to depend on.
“We have the opportunity now to study the numbers in more depth before deciding on whether to progress, taking into account the needs of the city’s tax payers, and ensuring we learn lessons from the past.”
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