Pen has been put to paper on the deal for GrandLinq to design, build, operate, maintain and finance Waterloo Region’s light rail transit system.
It all adds up to a lot of money – but a little bit less than officials first expected.
Due to low interest rates over the first few months of the year, the region says savings of $11.5 million have been realized on the project’s predicted financing costs.
Add that to $2.5 million in construction cost savings, and it adds up to a sizable sum.
“It is good news for the project. Between December and May, we’ve saved $14 million,” says regional councillor Sean Strickland.
In total, the region expects $818 million will be spent to build the Ion system, and a further $901 million to run it for 30 years.
That’s assuming the project survives the continuing court challenge launched by Waterloo business owner Jay Aissa.
Aissa says he expects costs to balloon past current projections.
“If you look at $11 million (saved) over $2 billion, that’s nothing,” he says.
“We’re going to be back in court on May 30, and we’ll see if the region is on solid ground.”
Strickland says the region will continue to defend its position against the legal challenge.
“We’re confident that we’ve done everything we needed to do as a region,” he says.
“We feel quite confident that, at the end of the day, we’ll get a ruling that validates that.”
A ground-breaking ceremony for the Ion system is expected to take place in a few weeks’ time.
Around the same time, Strickland says, a construction schedule will be finalized and made public.
