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The Borders Railway is to be delivered by Network Rail in a new rail industry partnership aimed at achieving best value for money, Transport Minister Keith Brown announced recently.

Building on the success of the recently completed Airdrie to Bathgate rail improvements, Transport Scotland will work together with Network Rail to deliver the project which brings rail services back to the Borders and Midlothian for the first time in over 40 years.

The move comes as Transport Scotland has had to cancel the original procurement competition for the project following the withdrawal of two of the three bidders.

Mr Brown said:

"I am pleased to announce this new route forward for the Borders Railway project which will return a long-awaited public transport link to communities who lost it over four decades ago.

"We continue to be steadfastly committed to this vital scheme and we are actively managing and making prudent decisions to ensure efficient delivery as quickly as possible.

"Despite early enthusiasm from bidders, it is disappointing that two consortia dropped out for their own commercial reasons. Following the withdrawal of IMCD from the procurement in the summer, we said we would consider our options to find the right way forward to deliver the project for the best value in the shortest possible time. Today's announcement concludes that process."

"Network Rail has confirmed it is pleased to be asked to take this project forward and I am confident it is able to deliver the project within budget and with significant ongoing savings to the public purse. I am pleased to have the opportunity to build on the success of the Airdrie to Bathgate project which also featured a partnership between Transport Scotland and Network Rail."

The capital cost of the project is expected to be within the £235 million - £295 million range. Ministers remain committed to the target project delivery date of December 2014. Transport Scotland will now work with Network Rail to deliver the project and its benefits for the local communities and businesses in the Borders.

Mr Brown added:

"We have amply demonstrated our ongoing commitment to the project with the investment of £60m already, which has secured the necessary land for the scheme and progressed a programme of ancillary works which is nearing completion.

"The new line will be a catalyst for encouraging approximately £40 million of benefits for the wider Scottish economy as well as increased business development and housing opportunities, inward investment and public sector relocation for the local community.

"In the shorter term, approximately 200 - 400 jobs will be created during the period of construction, yet another example of the Scottish Government doing everything it can for the hard-pressed construction industry."

It is expected that Network Rail will use its supply chain to offer the construction industry the chance to bid for building the line.

Paul Plummer, group strategy director, Network Rail said: "Having successfully completed the Airdrie-Bathgate rail link project on time and to budget, we welcome this opportunity to work with the Scottish Government towards the delivery of another important piece of new railway infrastructure in Scotland."

Borders Railway will be a catalyst for encouraging approximately £40 million (2002 prices) of benefits for the wider Scottish economy as well as increased business development and housing opportunities, inward investment and public sector relocation for the local community. It will reduce the amount of carbon dioxide emissions by 435,000 tonnes (over a 60 year period), and reduce the reliance on the car, in turn helping to reduce congestion. The project is expected to reduce the number of road accidents on the A7 and A68 by approximately 10 accidents every year period.

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