Province holding back millions from City of Ottawa over derailed LRT project

A letter from the Ministry of Transportation to city officials also makes clear that the $1.2 billion for Phase 2 LRT is also at risk.

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A letter from the Ministry of Transportation to city officials also makes clear that the $1.2 billion for Phase 2 LRT is also at risk.

The letter, dated Nov. 2, states that the ministry has noted, “some of the issues facing the OLRT1 project, including at least 3 issues that have involved either an investigation or a review by the Transportation Safety Board.”

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The letter, sent by ministry officials to city officials, states that the $60 million holdback will not be released until the city can confirm that all safety issues have been addressed.

Specifically, the province is asking the city for an attestation that all issues raised by the Transportation Safety Board (TSB) have been addressed and to submit a report from an independent engineer that the construction of the system has been done “in accordance with industry standards.”

Despite telling the city that their funding won’t be coming, the letter does end on a warm note.

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“We would like to reemphasize that we appreciate the ongoing cooperation with the City of Ottawa and our staff contacts,” wrote Vrinda Vaidyanathan of the ministry’s capital compliance branch.

The LRT has not been operating since the Sept. 19 derailment.

City officials have stated that they hope to have partial operation by the end of November and full operation resuming in December.

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