Proposals to extend the Midland Metro tram system are looking more secure, despite the Government turning down light rail schemes elsewhere in the country.

A new approach to the way plans are drawn up is being put forward and is set to get the go-ahead from councillors on the West Midlands Passenger Transport Authority this week.

Centro, the public body which promotes and develops the Metro, aims to remove some of the risk elements which previously have led to spiralling costs in Manchester and Leeds.

In the West Midlands, councillors are being asked to approve the bringing forward of more design work for Metro extensions between Wednesbury, Dudley and Brierley Hill and into Birmingham city centre.  Under the revised process this work will be carried out by Centro, rather than by the eventual builder of the system.  The budget for design and preparation work will increase from £3.5m to £6m to accommodate the changes.

“This change represents an important investment in the future of public transport in the West Midlands,” comments PTA chairman Cllr Gary Clarke.  “By re-scheduling the way funding is allocated we can improve the prospects of keeping the overall scheme on target.”

It is thought much of the extra expenditure on design work could possibly be recovered by removing the need for the private sector to finance risk elements later on.

Discussions with both the Department for Transport and potential sources of private finance have confirmed that the new Centro approach is on the right track, councillors are told.

When he turned down funding for Manchester, Leeds and South Hampshire, Secretary of State Alistair Darling said no Government could approve schemes with such significant cost escalations.  “We need instead to look urgently at how light rail can be made more affordable, including the best approach for procurement,” he said.

Alistair Darling referred in his speech to a report by the National Audit Office.  This report had been welcomed by Centro, as it confirmed the approach already being taken to expand light rail in the West Midlands.

Three separate bids will be sought for building and maintaining the expanded Midland Metro; supply and maintenance of the trams; and operating the system.