Ottawa, RTG settle LRT contract issues
The City of Ottawa and Rideau Transit Group (RTG), the builder of its troubled light rail line, have reached an out-of-court settlement to resolve several issues relating to maintenance work.
A recent statement issued by the organizations says the agreement resolves several outstanding issues and resets their relationship to focus on the delivery of safe and reliable transit services.
The relationship between the purchaser and the construction group went sour almost immediately after the Confederation Line opened. The city filed a notice of default against RTG in March 2020 – six months after the line opened – and a second in September 2021 following two derailments.
The city later said it took the action with a view to rending its 30-year, $1-billion maintenance contract with RTG.
The settlement statement is light on specifics, and a spokesperson for the city indicated no further details would be forthcoming.
It resolves the notice of default relating to the 2021 derailments, with RTG officially acknowledging the default, and the city promising to monitor progress on the constructor’s plan to address the issues that led to the derailments. RTG has committed to resolving these issues before the Stage 2 East extension opens in 2025.
The settlement also resolves “several disputes concerning RTG’s performance during the maintenance phase and the City’s administration of the contract during the maintenance phase.”
The parties say the settlement demonstrates their acknowledgement of the importance of cooperation, which the Justice Hourigan urged in his public inquiry into the line failures, and demonstrates their commitment to the public interest in delivering safe and reliable train service.