The latest salvo fired over delays in LRT vehicle manufacturing at Bombardier could have a ripple effect on Waterloo Region’s Ion system.
Metrolinx, the provincial agency behind several LRT projects in Toronto says it’s concerned about Bombardier’s ability to provide 187 LRT vehicles on the agreed-upon schedule.
Asked if the agency is considering legal action against Bombardier, a spokesperson said in a statement that Metrolinx is “very anxious to see a resolution” and considering all of its options.
“Metrolinx has been clear for some time that our concerns were escalating with each passing day,” the statement read.
Although Waterloo Region’s contract with Bombardier is considered a separate matter, the 14 vehicles for the Ion system are supposed to be the first of the 187 produced.
The first of those vehicles was originally expected to be ready for August, but has since been pushed back until December.
As a result, the anticipated start date for Ion service has been moved from late 2017 to early 2018.
Coun. Tom Galloway says the region is watching the situation closely, and has a number of tools at its disposal.
Those tools include the ability to fine Bombardier $1,500 per delayed vehicle per day of delay, up to a maximum of $3.3 million.
According to Galloway, that would likely only come into play if the delays get to the point where the region is feeling financial heat.
“If we incur costs … then we will be looking at our options,” he said.
“We’d rather have the vehicles than their money.”
According to Galloway, piggybacking on Metrolinx’s order with Bombardier saved the region approximately $6.4 million in vehicle costs.
Bombardier could not be reached for comment before this story was published.
With reporting by Victoria Levy
