The future of the Midland Metro expansion, with new routes through Birmingham and the Black Country, was looking more certain this week after councillors approved a new way of financing the ambitious £370m project.

Members of the Passenger Transport Authority, which sets policy for scheme promoter Centro, agreed a three-way split of contracts for constructing the expanded network, supply of the trams and operating the system.  It will be a similar model to that used successfully for the Dockland Light Railway and replaces the design-build-operate contract used for Midland Metro line one.

A report to the PTA meeting this week said the revised approach had already received a warm welcome from Government and a number of positive approaches from major companies who could potentially tender for the scheme.

By de-risking the project at an early stage, West Midlands transport bosses expect to avoid the pitfalls that have led to cost increases elsewhere and the Government withdrawing funding for light rail schemes in other cities.  The Midland Metro expansion ahs increased in price, mostly due to construction inflation – however the business case due to be submitted early next year will show a very positive benefit to cost ratio and, crucially, the local funding contribution of 75 per cent has already been earmarked.

Councillors from all parties gave the new procurement approach unanimous approval at this week’s meeting of the PTA.