The shortlisted bidders are:

• BAM Colas Rail JV
• Dragados
• Farrans Sacyr Neopul JV
• Sisk Steconfer JV

The quartet will now be invited to tender in mid-April for work including design and construction of all track, overhead line, tram stops, systems infrastructure, road infrastructure and public realm.

Following the tender period, which is likely to last until late summer 2018, the Council will update the Final Business Case and seek a Council decision in late 2018 as to whether the project should proceed to the construction stage.

A separate £25m utility diversions deal for the project is also currently out to tender.

The council is taking a cautious approach to tendering after major cost overruns on the earlier city centre phases.

Transport Convener Councillor Lesley Macinnes said: “When the Outline Business Case was approved by Council in September 2017 we pledged to test the OBC with a robust procurement process before reporting back with the Final Business Case.

“Our project team – the same team who successfully delivered the tram to York Place following mediation – has worked very closely with the market over the past 18 months, developing a contract strategy that meets market expectations and the requirements of the Council.

“We were very pleased with the significant level of interest from local, national and international bidders and this process has resulted in a strong shortlist of experienced design and build contractors as we move on to the tender stage.”