Metrolinx, the provincial agency responsible for transit in Toronto and Hamilton, has signed a new contract with Bombardier.

Of the 182 light rail vehicles it originally ordered, Metrolinx will now only purchase 76. The remaining 106 vehicles will replaced by 61 larger cars from Alstom.

And that may be good news for Waterloo Region.

Thomas Schmidt, the Commissioner for Transportation and Environmental Services, says the region could benefit from the renegotiation with Bombardier.

“Essentially what it gives us is a firm date for delivery and significant financial penalties if Bombardier doesn’t deliver. So we expect Bombardier will be very motivated to deliver those vehicles here to the region.”

The region’s fourth Ion vehicle is expected to arrive sometime over the holidays.

Six more are in final production and testing in Kingston, and the last four are still being assembled by Bombardier.

Metrolinx had asked the courts for the right to cancel its contracts with Bombardier over its doubts the company could fulfill its order.

Alstom Canada says it will open a manufacturing plant in Brampton to build its vehicles, creating 120 new jobs.

With additional reporting from The Canadian Press