Midland Metro Line One set to go

Line One of the Midland Metro light rail system between Birmingham Snow Hill and Wolverhampton is ready to go. All preparations for the œ102.4 million line are complete include DoT appraisal, European Grant and land acquisition.

Private sector partner, ALTRAM, a jv between John Laing, Italian rail systems company Ansaldo Trasporti, and West Midland transport authority Centro, is now awaiting the outcome of bids for Government funding in the November budget.

If Centro's bid is successful, work can begin on the 20.4km route immediately.

Laing and Ansaldo Trasporti are investing œ9 million of their own money in the design, build, operate and maintain scheme. The consortium will shoulder most of the construction risk and all of the operational risk. They will operate the line without any public subsidy for a total of 23 years. Centro has obtained powers to build two further lines and has plans for up to 15 eventually.

But there are still concerns that any boom in light rail construction will be held up by the Government and a reluctance by banks to finance the projects.

This could mean only one or two of the many light rail schemes going ahead in the next few months, heightening tensions between rival promoters in the rush for cash for their projects.

The Midland Metro is vying with Croydon's Tramlink and a œ70 million Nottingham scheme for funds.

But there are many other proposed projects around the country including in Leeds, Bristol and Glasgow.

l Manchester's tram system is already needing repair just months after opening. Buses running over the rails have damaged them and engineers are now busy trying to address the problem.