Step towards £295m rail contract

The Borders rail link will cost up to £295m to construct

The process of appointing a contractor to build the £295m rail link between Edinburgh and the Borders will get under way by the end of the year.

Finance Secretary John Swinney confirmed the move during a visit to the South of Scotland Forum.

He said the rail link could be a "significant catalyst" for economic growth in the region.

Construction work is set to start on the line from Edinburgh to Tweedbank in 2011 with completion due in 2013.

Mr Swinney said the procurement process for the route would get under way before Christmas.

He said: "This Scottish government has always made its commitment to this vital public transport link clear.

It may be overdue, but this is positive and should mean the focus is now on building the line so that we can gain the economic benefits the region deserves Michael Moore MP

"Providing a fast, efficient link connecting communities in the Scottish Borders and Midlothian to Edinburgh will be a significant catalyst for economic growth in the region."

He said "unprecedented changes" to the economic climate had meant it had not been prudent to launch the procurement process sooner.

However, he said that market testing had now provided the "necessary assurance" that conditions were favourable enough to proceed.

Lib Dem politicians in the Borders have described the move as "late but very welcome".

MP Michael Moore said: "The case for the railway is stronger than ever in the current climate and we have waited too long for this decision.

"Last week we challenged the cabinet secretary to take this opportunity to make the announcement and we now welcome it.

"It may be overdue, but this is positive and should mean the focus is now on building the line so that we can gain the economic benefits the region deserves."

'Excellent progress'

Once completed, the line will run from Edinburgh's Waverley station, through Midlothian, to Tweedbank in the Borders.

Mr Swinney said that "significant progress" on the project had already been achieved.

He said: "Further market testing has been under way and delivery of the project has continued to make excellent progress."

He said all the land required to allow construction had been acquired and more preparatory works were due to get under way shortly.