The City of Edinburgh Council has approved plans for the design, construction and maintenance of the city's tram network
German consortium BBS were recommended by Transport Initiatives Edinburgh (Tie) Limited to carry out the work, which is expected to cost around £500m.
An overwhelming majority of councillors voted in favour of the final business case for a new system.
Spanish firm CAF has been nominated to build and maintain the trams themselves.
Some business leaders had raised concerns about the impact of the route, claiming that local traders were already losing money as roads were dug up to relocate pipes and water mains.
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