LRT delay to cost $14M for OC Transpo

Lost train revenue and the continuing cost of bus service during the 6-month confederation LRT delay is expected to cost OC Transpo $14 million this year, but staff say the delay also comes with savings that can be used to cover those overruns.

City expects the line will be up and running by the end of November

Laura Osman · CBC News ·
One of the city's new light rail trains parked at the future Tremblay LRT Station in Ottawa's east end. (Giacomo Panico/CBC)

Lost train revenue and the continuing cost of bus service during the 6-month confederation LRT delay is expected to cost OC Transpo $14 million this year, but staff say the delay also comes with savings that can be used to cover those overruns.

The proposed budget changes were released in a report to the transit committee on Wednesday.

"These increased costs will be offset by the reduced maintenance payments and debt repayments to RTG, the energy costs of the line, and other associated savings," the report reads.

The budget for OC Transpo was set before the contractor on the project, Rideau Transit Group (RTG), announced that it would not meet its deadline to hand over the line to the city.

The city now expects to get the keys to the line on Nov. 2, and hopes to pick up passengers by the end of that month.

OC Transpo plans to continue to run bus detours parallel to the LRT line once the line is up and running to create a smoother transition onto the train system. That overlap service will cost $4.5 million, which was already budgeted for and will be paid for by RTG.

The city is still negotiating with RTG to cover other costs associated with the delay.

The city's transit committee will discuss the budget implications of the LRT delay next week.