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Usually tramways are built with metre gauge because of lack of space or to make it possible to go around on narrow streets.
There are lots of metre gauge tramways (and railways) in Switzerland for example.
I believe they built the Metro tramay with 1000mm because it needs less space and can have tighter bends.
Plus, at the time it was built, it was manh times cheaper to build narrow gauge.
Same with a lot of private railroads in Sweden. They were built in 891mm (often) because it was cheaper.
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Railroad technician
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