Metrolinx considers terminating $770-million deal with Bombardier

Metrolinx has confirmed they have filed a notice of intent to terminate their contract with Bombardier for a supply of light rail vehicles.

The provincial transit agency says they have not yet received their pilot vehicle for the Eglinton Crosstown line, which was scheduled to arrive in 2014. Since then, the Quebec-based aerospace and railway manufacturer has missed several additional deadlines.

Metrolinx had a $770-million contract with Bombardier for 182 new light rail vehicles for the Eglinton, Finch and Sheppard lines.

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Metrolinx authorities tell CityNews they plan to visit the Bombardier plant in Thunder Bay to check on the progress.

The notice of intent doesn’t necessarily mean Metrolinx will cancel the contract but it is the first step in doing so. Bombardier was served with a notice of default back in July due to the ongoing delays.

A Bombardier spokesperson tells The Globe and Mail the move by Metrolinx is a “normal contractual procedure” adding production isn’t scheduled to begin until 2018 so there is no way the company can be in default of its obligations.

Metrolinx is not the only one being left in the lurch by Bombardier. The TTC has also been dealing with delays in delivery of new streetcars.

The company was supposed to have delivered 70 new streetcars to the TTC by early August, but a spokeswoman for the TTC said it was now hoping for 31 at the end of the year.