A deal between Metrolinx and Bombardier, worth $770-million, has been cut down significantly, says the Greater Toronto Area’s transit authority in a statement on Thursday.
A press release sent out by Metrolinx outlines the new deal with the Montreal-based transportation company. In it, the company explains that the original order for 182 light rail vehicles for the Eglinton Crosstown system has been shrunk to just 76.
“This new agreement is positive news for commuters who can continue to have full confidence that we are building an excellent transit system for them,” the statement reads.
There will also be “significantly higher” fines if Bombardier fails to deliver the vehicles on time.
This new agreement also extends the operation and maintenance contract Bombardier already has with Go Transit by 18 months. They had been blocked from bidding on continuing the contract they currently hold for operating and maintaining trains on Go Transit.
In a statement, Bombardier said the new agreement “clearly resets the relationship with Metrolinx” and settles the dispute between the companies.
A history of tension
Tensions have been mounting between the Metrolinx and Bombardier for over a year.
In November 2016, Metrolinx filed a notice of intent to cancel the multimillion-dollar contract with Bombardier for the LRVs — alleging that the transportation manufacturer had missed critical deadlines for the project. However, Bombardier successfully filed an injunction allowing them to keep the Eglinton Crosstown contract.
In May, the transit authority ordered 61 light-rail vehicles from competitor Alstom Canada, in case Bombardier failed to deliver vehicles by the official opening date in 2021.