City of Mississauga supports Metrolinx deal with Bombardier competitor, Alstom
May 12, 2017 by Rachael Williams, Mississauga News
Mississauga city staff say they are confident the $528-million deal between Metrolinx and Bombardier's rival, Alstom, will not result in any unforeseen project delays or cost increases for the Hurontario LRT.
Provincial transportation minister Steven Del Duca announced Metrolinx has agreed to purchase 61 cars from Alstom, a French manufacturer, in case Bombardier fails to meet its deadline for the Eglinton Crosstown cars. Forty-four of the vehicles are officially earmarked for Mississauga’s 20-kilometre Hurontario LRT. The rest will be allocated to rail lines along Finch Avenue.
However, if Bombardier fails to deliver enough cars to open the Crosstown by 2021, the Alstom vehicles will be redirected to that project. Additional vehicles will have to be purchased by Metrolinx to cover the Hurontario and Finch lines.
“At this time the project schedule remains the same we would work with our partners at Metrolinx to determine plans,” said Geoff Wright, commissioner of transportation and works with the City of Mississauga. “In the statement from the Minister, it indicates that their announcement today is about a plan to ensure projects are delivered on time as it relates to LRT vehicles.”
The deal with Alstom is designed to safeguard the LRT timelines in case Bombardier fails to meet its targets.
“We believe that this is both a creative and prudent approach to dealing with a less than ideal situation that none of us relishes being in,” said Del Duca at the press conference.
In 2010, Metrolinx signed a $770-million deal with Bombardier for the purchase of 182 light rail transit vehicles. The first two pilot vehicles were set to arrive in spring 2015, but manufacturing delays and legal battles slowed down production.
The province tried to terminate the contract last fall, but an Ontario Superior Court Judge ruled Bombardier would suffer irreparable harm if the deal were cancelled. The issue was re-directed to a dispute-resolution board, a process which takes eight to 12 months.
Fearing further project delays, Metrolinx sole-sourced the new deal with Alstom, who’s vehicles are larger, meaning less are required to service the Crosstown.
The deal also reduces the financial risk for the province, as Metrolinx could have faced fines of up to $500,000 per day, owed to the consortium building the Crosstown, if vehicles weren’t ready to go when needed.