Ottawa recommends Rideau Transit Group for light-rail project

Written by Jenifer Nunez, assistant editor
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In Ottawa, ON, Canada, city staff has recommended that the international consortium known as the Rideau Transit Group be awarded the contract to design, build, finance and maintain the Ottawa Light Rail Transit (OLRT) project.

Rideau Transit Group’s proposal outlines a construction schedule that will see project construction substantially complete by the end of 2017 and in service by 2018. Moreover, the Rideau Transit Group has agreed to a fixed price contract of CA$2.1 billion (US$2.118 billion), meaning the city and Ottawa taxpayers will not be financially responsible for cost overruns related to construction.

Funding is being provided by the government of Canada, the government of Ontario and the city of Ottawa. The government of Canada is contributing CA$600 million (US$605 million) through the Building Canada Fund. The city will also allocate up to CA$192 million (US$194 million) of its federal Gas Tax Fund transfers to this project. The government of Ontario is contributing CA$600 million (US$605 million). In addition, the city will allocate CA$287 million (US$290 million) of Provincial Gas Tax receipts to the capital infrastructure. The remaining project budget funds will come from development charge revenues and transit reserves.

The staff recommendation will be reviewed by the committee on December 12 and then by council on December 19.

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