News & Reviews News Wire Ottawa will pay light rail consortium some funds withheld over service issues

Ottawa will pay light rail consortium some funds withheld over service issues

By Trains Staff | February 7, 2023

| Last updated on February 6, 2024

Under January settlement, city will end effort to void Rideau Transit Group’s 30-year maintenance contract

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Red and white light rail train rounds curve
Ottawa will pay some of the money withheld over Confederation Line service issues under a settlement reached last month, the CBC reports. OC Transpo

OTTAWA — The City of Ottawa will pay millions of dollars withheld over service problems to the consortium that built and operates the city’s light rail Confederation Line under a recently negotiated agreement, the CBC reports.

The city and Rideau Transit Group announced in late January they had reached a settlement in a long-running dispute that twice saw the city service RTG with notices of default and was scheduled to go to court this month [see “Ottawa, builder of light rail line announce settlement,” Trains News Wire, Jan. 27, 2023].

The city had withheld some C$65 million between September 2019 and the end of 2022 over problems with the light-rail line, which has seen a lengthy list of operating issues. While most details of the settlement remain secret, the CBC said it has learned the city will pay a portion of that money — described as a “limited portion” in a statement by Mayor Mark Sutcliffe. The city will also end its effort to void RTG’s 30-year maintenance contract worth some $1 billion. RTG, meanwhile, has agreed to hire more people to provide service to the city, and both sides are working on a plan for long-term repairs to the Confederation Line. No date has been set for presenting that plan.

One thought on “Ottawa will pay light rail consortium some funds withheld over service issues

  1. I will never understand why Ottawa chose a different supplier than Calgary & Edmonton for their system. Siemens Duwag equipment has proven to be reliable in Alberta’s harsh winters. Many U-2 original cars are still performing since 1979. Neither Calgary or Edmonton has had the embarrassing breakdown issues like our capitol has. I hope that Ottawa can dump the contractor that has caused these issues that are to do with training mechanical staff.

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