Alstom Gets $180-Million Contract For LRT Maintenance

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Alstom has been awarded $180 million contract to maintain the Confederation Line light-rail system.

The details of the deal are in the release from Alstom below:

Alstom Release


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4 thoughts on “Alstom Gets $180-Million Contract For LRT Maintenance

  1. Grant Bailey, General Manager of Rideau Transit Maintenance

    Dear Mr. Bailey,
    This was well written and looks promising for LRT supporters.
    Please provide what guaranty’s are included in this thirty year contract for the protection of City of Ottawa taxpayers? Who pays for any and all legal actions brought forward by the Contractor? Does the City have the legal right to postpone and or cancel this contract with or without penalties? In the case of a disaster caused by the Contractor, how is the City protected? Is this 30 year contract guaranteed by the City to the Contractor? Does the Contractor have a legal right to cancel the contract?
    What terms and conditions apply to the above?

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    1. Earle Rheaume,

      This contract for the maintenance of the system awarded to Alstom came as no surprise since Alstom already had the contract to deliver and maintain (for 30 years) 34 Citadis Spirit light rail vehicles for the Confederation line.

      I much prefer to have an experienced global rail transport company, like Alstom, maintain this system than OC Transpo. It appears that this contract places all the liability on Alstom should a rail problem/disaster happen. I would expect that Alstom is forced to carry some type of insurance to cover potential problems.

      My worry is more with the economics of the project. When the financing is calculated, over a 30-year period, this Stage1 of the Confederation line will cost close to $5-billion — not simply the $2.1-billion which Mayor Jim Watson keeps repeating ad nauseam. How much of that cost will the city be responsible for? How has the city budgeted for that?

      It would certainly be nice to comprehend the financials of this project, especially before we move into the further expansion of the Confederation line.

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  2. Wasn’t this part of the deal when they got the contract to build the trains ? Is it the norm to give 30 year contracts for this type of work?
    I wonder if there’s any former Alstom executives or other employees still at the city or OC Transpo now that Alain Mercier is gone.

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