LRT Stage 2 now $1.2B more than projected; SNC-Lavalin, American-French consortium recommended as builders
Taylor Blewett, Ottawa Citizen
Updated: February 22, 2019
Embattled construction group SNC-Lavalin has been selected as one of the recommended proponents to build Stage 2 of the city’s light-rail transit system — a project which has ballooned in projected cost by $1.2 billion — Ottawa Mayor Jim Watson announced Friday.
The announcement comes while SNC is at the centre of controversy around the PMO’s alleged political pressure on then-Attorney General Jody Wilson-Raybould in her handling of the criminal prosecution of the Quebec company.
Watson announced that after a three-year procurement process, the city has chosen TransitNEXT (made up of Montreal-based SNC-Lavalin) to work on the next $1.6-billion phase of the north-south Trillium Line, which will see it extended to Riverside South.
East West Connectors (made up of American construction company Kiewit and French builder and transit operator Vinci) has been selected to handle the next phase of the east-west Confederation Line, which will bring it out to Orléans on one end and Algonquin College in the other.
In contrast to the $3.4-billion Stage 2 LRT construction cost estimated in 2017, the city now says the project will cost $4.6 billion due to changes in scope and market pressures that have driven up the cost.
The first phase of the Confederation Line is slated for handover to the city March 31, but the mayor and transit head John Manconi have voiced doubts that the builder Rideau Transit Group can achieve that deadline.
Construction on LRT Stage 2 — which will bump the number of stations from 19 to 41 — is expected to begin in 2019.
The city said the completion of Stage 2 will bring 77 per cent of residents within five kilometres of light rail.
City staff said the province has confirmed it’s still on board for a $1-billion contribution to LRT Phase 2, and an announcement and formal agreement will be arranged in the near future.
Chris Swail, the city’s director for the Stage 2 project, said the city needs council approval and executive agreements in place with the provincial and federal governments by the end of March, to ensure they can lock in with the selected proponents at the prices they’ve put on the table.
“We have to move quickly, unfortunately,” Swail said.
Stage 2 of the Confederation Line is expected to be delayed — initially, the city cited a completion date of 2023, but said Friday it would be 2025.
Coun. Diane Deans suggested the city needs to check with Ottawa residents to determine if they’re still on board with LRT Stage 2, given the project changes announced Friday.
Deans also questioned why the city would “reward” SNC-Lavalin with a contract for Stage 2 given their involvement in the delay-plagued first phase of the Confederation Line.
Swail answered that “running a procurement process is not about rewarding anyone … whoever has the strongest bid in the process evaluation is the winner.”
Deans also alluded to the company’s ongoing legal issues, asking: “Given their more precarious position now, and the potential for loss of income in the future … could that create a jeopardy for us and delay the project if they get in more trouble?”
The city will also be applying some hard-earned Stage 1 lessons to Stage 2, including stronger penalties if “projection completion notifications” are missed; a better idea of cost management; and “expanded mobility matters” to include pedestrians and cyclists.
The report on Stage 2 will come before committee on Wednesday. Council will vote on it March 6.
https://ottawacitizen.com/news/local-new...d-as-recommended-builder-for-lrt-stage-2
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