page_title: Edinburgh Trams
section_title: Funding crisis
hierarchical_section_title: Edinburgh Trams / History / Construction: 2007–2012 / Funding crisis
caption_attribution_description: English: Edinburgh Trams in the Gogar Tram Depot. The first tram arrived in April 2010, and by now most had arrived - the last of the 27 strong fleet arrived in December 2012. Testing began in December 2011 on what little track had been completed in the area of the depot - it wasn't until May 2014 that the system opened. Such were the delays and cancellations, that only 8 trams are needed to run the peak service.
context_page_description: Edinburgh Trams is a tramway in Edinburgh, Scotland, operated by Edinburgh Trams Ltd. As of 2017 it is a 14-kilometre line between York Place in the New Town and Edinburgh Airport, with 16 stops.
  Construction began in June 2008, and after encountering delays it opened on 31 May 2014. The scheme had an initial estimated cost of £375 million in 2003, but by May 2008, when contracts were signed, the cost had risen to £521 million. The final cost after delays was £776 million.
  After running for only two years the scheme had achieved pre-tax profitability and exceeded the original ridership targets. On 14 March 2019, Edinburgh Council voted to approve the extension of the existing line from York Place to Newhaven. The extended line is due to be operational by early 2023.
context_section_description: Following further disputes and delays, it was reported in March 2010 that Edinburgh Council was considering cancelling the contract with Bilfinger Berger. By June 2010, the project's cost had risen to £600 million. Council project managers were reported to be in crisis talks, considering options including: borrowing £55 million to fund the increased costs; phasing the introduction of the tram line, so that trams would initially run between the airport and Haymarket; and terminating the contract with Bilfinger Berger. The council asked TIE to draw up costs for truncating the line at four places: Haymarket station, York Place, the foot of Leith Walk or Ocean Terminal.
  Work resumed in May 2011 at priority locations, Haymarket Yards and Gogar, while the project's future was decided by the council. In August 2011 it was announced TIE would be disbanded and consultants Turner & Townsend would manage the project.
  On 30 June 2011, Edinburgh Council voted to continue the line between Edinburgh Airport and St Andrew Square. Costs rose to an estimated £770m, leaving the council with a shortfall of more than £200m. The option to scrap the project was considered, but rejected. On 25 August 2011, the council voted to cut the line to run between the airport and Haymarket, reducing the expected cost to £715m. A week later, after the Scottish Government threatened to withhold £72 million of funding, the council reversed its decision, restoring the terminus at St Andrew Square. On 29 November 2011 it was announced that the eastern terminus would be at York Place instead of St Andrew Square; the intention had been to build the tracks to a reversing point at York Place (without a stop for passengers). Extending passenger services from St Andrew Square to York Place would enable Broughton Street, Picardy Place and the surrounding area to be better served at comparatively little additional cost.
  The first electric wires were energised in October 2011 within the depot at Gogar. Testing trams began in December 2011 near the depot at Gogar, on a 500-metre (550 yd) length of track. On 15 December 2011, the contractors handed the depot to the City of Edinburgh Council.
  The first completed section of line, between the depot and Edinburgh Airport, was used to test a tram at full speed on 19 December 2012.
  With extra interest payments factored in, the cost of the line was expected to exceed £1 billion.
caption: Gogar depot in October 2012
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