rbt
Senior Member
You're equating availability and operation cost with operation cost. Who do you think pays for the capital cost for a student traveling to York University? It (and the rolling stock) was debt financed just the same. The levelized cost of availability is just hidden.
In the contract REM costs are forever (inflation adjusted), surviving many many decades after the capital debt is paid down. Capital debt in most systems largely disappears after 30 years, at which point government can afford to do another expansion cycle again, even with high interest rates.
But I addressed that difference already using the 2050 example year. Also addressed how the government can force CDPQ to change the terms of the contract; they don't need to get stuck like Ontario with Highway 407 terms when they realize they're still paying over 50% of their total transit budget (capital + operations) on REM in 2060.
REM as a capital project is awesome. REM as a legal/fiscal structure for implementing transit is one of the worst possible; not a model for other governments (like the federal government) to follow.
Last edited:




