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
Grandparents killed in wrong-way crash on Hwy. 401 identified
A 60-year-old man and a 55-year-old woman killed in a wrong-way crash on Highway 401 earlier this week have been identified by the Consulate General of India in Toronto.
Police arrest 3 Indian nationals in killing of B.C. Sikh activist Hardeep Singh Nijjar
Three people have been arrested and charged in the killing of B.C. Sikh activist Hardeep Singh Nijjar – as authorities continue investigating potential connections to the Indian government.
Suter scores late goal, clinches series for Canucks
Pius Suter scored with 1:39 left and the Vancouver Canucks advanced to the second round of the NHL playoffs with a 1-0 victory over the Nashville Predators on Friday night in Game 6.
TD worst-case scenario more likely after drug money laundering allegations: analyst
TD Bank Group could be hit with more severe penalties than previously expected, says a banking analyst after a report that the investigation it faces in the U.S. is tied to laundering illicit fentanyl profits.
Quebec man who threatened Trudeau, Legault online sentenced to 20 months in jail
A Quebec man who pleaded guilty to threatening Prime Minister Justin Trudeau and Premier François Legault has been sentenced to 20 months in jail.
Human remains found in rural Sask. possibly a decade old, RCMP say
RCMP say human remains found in a rural area in central Saskatchewan may have been there for a decade or more.
Britney Spears 'home and safe' after paramedics responded to an incident at the Chateau Marmont, source tells CNN
A source close to singer Britney Spears tells CNN that the pop star is 'home and safe' after she had a 'major fight' with her boyfriend on Wednesday night at the Chateau Marmont in West Hollywood.
Canadian doctor concerned new weight-loss drug Wegovy may be used inappropriately
As Wegovy becomes available to Canadians starting Monday, a medical expert is cautioning patients wanting to use the drug to lose weight that no medication is a ''magic bullet,' and the new medication is meant particularly for people who meet certain criteria related to obesity and weight.
Drew Carey is never quitting 'The Price Is Right'
Drew Carey took over as host of 'The Price Is Right' and hopes he’s there for life. 'I'm not going anywhere,' he told 'Entertainment Tonight' of the job he took over from longtime host Bob Barker in 2007.