Province threatens to withhold $60M in Ottawa LRT funding
The Ontario government is threatening to withhold $60 million in funding for Ottawa’s light rail system because of the problems plaguing Stage 1.
A letter from a senior ministry of transportation official to the city’s director of rail construction says the province has “noted some issues” facing Stage 1 of Ottawa’s LRT project, including the derailments in August and September of this year.
“We would like assurances that provincial funding is being used for assets and infrastructure that are safe and meet industry standards,” says the letter obtained by Newstalk 580 CFRA's Bill Carroll. It was sent to the city on Tuesday evening.
The Confederation Line has been shut down since the second derailment on Sept. 19, with OC Transpo running bus service in its place.
The province is putting $600 million for Stage 1 of Ottawa's LRT and $1.2 billion for Stage 2 LRT, about one-third of the project.
In the letter, the ministry of transportation sets out three conditions for releasing a $60 million holdback to the city:
- Confirmation that the Transportation Safety Board investigation into cracked wheels is finished, and an attestation that the city has addressed the recommendations or a developed a plan to address them.
- Confirmation that the TSB reviews of the August and September derailments are finished, and that the city has either addressed them or developed a plan to do so.
- An attestation from an independent engineer.
The $60 million is being held back pending a final compliance audit report, which the city hasn't yet submitted.
A spokesman for Mayor Jim Watson said the letter appears to be standard due diligence by the province.
“The City has already undertaken to address all issues raised in the letter,” Patrick Champagne said in an email. “Mayor Watson has asked the City Manager to review the letter and to provide a more fulsome update to Council and the public in the coming days.”
Speaking to reporters after Wednesday's city council meeting, City Manager Steve Kanellakos said the letter came as a surprise on the eve of budget day, but he's confident the city will meet the province's expectations.
"There's no issues in my mind of us not being able to respond fully to what they've asked. I don't believe that $60 million holdback is in jeopardy at all," he said. "Anything they've asked is actually in execution mode right now and I'm certain we will satisfy the questions that they have under the agreement we have with the ministry of transportation."
Watson stressed that the city will not return service to the LRT until it is deemed safe.
"Bottom line remains that until we are 100 per cent satisfied with the safe return of the service, we won't push an opening date just to meet a specific timetable," he said.
Kanellakos clarified that this is a normal process for projects of this magnitude.
"We received all of our funding for Stage 1. The last piece is to submit the final audited statements that are still in progress. We're still working on that, that's not unusual for a project of this size, and now they've put on three more requirements before they release that 60 million," Kanellakos explained. "I have no doubts at all that we're going to be able to meet those requirements. In fact, we're well underway and on our way to complete what they've asked for."
Correction
An earlier version of this story said the province is threatening to withhold $60 million in funding for Stage 2 of Ottawa's LRT project. In fact, the money is for Stage 1.
CTVNews.ca Top Stories
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
Cuban government apologizes to Montreal-area family after delivering wrong body
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
'Anything to win': Trudeau says as Poilievre defends meeting protesters
Prime Minister Justin Trudeau is accusing Conservative Leader Pierre Poilievre of welcoming 'the support of conspiracy theorists and extremists,' after the Conservative leader was photographed meeting with protesters, which his office has defended.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
'One of the single most terrifying things ever': Ontario couple among passengers on sinking tour boat in Dominican Republic
A Toronto couple are speaking out about their 'extremely dangerous' experience on board a sinking tour boat in the Dominican Republic last week.
Boeing's financial woes continue, while families of crash victims urge U.S. to prosecute the company
Boeing said Wednesday that it lost US$355 million on falling revenue in the first quarter, another sign of the crisis gripping the aircraft manufacturer as it faces increasing scrutiny over the safety of its planes and accusations of shoddy work from a growing number of whistleblowers.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
It's no secret that spring can be a tumultuous time for Canadian weather, and as an unseasonably mild El Nino winter gives way to summer, there's bound to be a few swings in temperature that seem out of the ordinary. From Ontario to the Atlantic, though, this week is about to feel a little erratic.