£500m pay-back clause in tram grant

Mar 2 2011

Scotland's capital could be obliged to pay back up to £500 million if it is unable to complete the city's tram project, a senior official from the national transport agency has said.

Ainslie McLaughlin, director of major transport infrastructure projects at Transport Scotland, said there are terms attached to the Scottish Government's maximum £500 million grant towards the Edinburgh project, over three-quarters of which has already been paid out, should the project not be completed.

Speaking at Holyrood's Public Audit Committee, Mr McLaughlin added: "Technically, the council could be obliged to pay back the money that the Government paid out to the project if it is not completed, so there is an ultimate protection.