The initiative is based on experiences with other tram schemes such as Nottingham's, where 70 per cent of all tender invitations went to East Midlands-based companies, resulting in a 40 per cent success rate.

TIE has already been in contact with local colleges such as Telford about setting up training courses to give people the skills needed for the jobs involved in the £500m project to build line 1A.

There are also plans to hold meet the contractors seminars where local firms can bid for business from the main firms hired to build the tram line.

Willie Gallagher, chairman of TIE, said: "We want to take the opportunity to get local people and businesses to benefit from the big investment that we are making in Edinburgh.

"This is why we want at least £200m of the £500m invested to go into the local and Scottish economy."