Ottawa City Council staff say another $ 60 million is needed “immediately” for the ongoing construction of Stage 2 of the O-Train, with nearly half of that money being spent. they use to complete a contingency fund that is almost empty long before any of the three are expanded. the railway lines have been opened.
While $ 25 million would go to the contingency fund, the other $ 35 million is needed for utilities, according to a new report going to the finance and economic development committee on June 28th. An unexpected number of water and gas lines had to be relocated. during construction.
“The Stage 2 LRT project requires additional funding immediately to support the project’s unforeseen costs that have a general net benefit to the city’s traffic system, as well as new unplanned utility costs that are essential to completing the project. Construction Director General of Traffic Renée Amilcar and City Treasurer Wendy Stephanson write.
The Council approved a $ 4.65 billion budget in 2019 to extend the Confederation line east to Trim Road and west to Moodie Drive, while carrying the Trillium diesel line south to Riverside South and the airport.
That included a contingency fund of about three percent, or $ 152.5 million, to cover price increases or design improvements, staff said.
None of the three railway extensions have yet to be opened (the south and west extensions are even considered to be behind their planned openings in 2022 and 2025, respectively), but only the contingency fund remains. $ 18 million and that’s not enough for the projected extra costs. .
City staff explains that many changes have been made since the contracts were awarded in 2019 to Kiewit-Eurovia-Vinci and SNC-Lavalin in order to improve the customer experience. For example, motorists will be better protected from the elements at Limebank Station in the south, and there will be more walls to prevent noise on Highway 174.
Meanwhile, Confederate line switch heaters will now be heated with gas instead of electricity, and a spare wheel latch has been installed in Belfast’s maintenance yard, both of which are difficult lessons to learn. after stage 1 of LRT saw switches that got stuck. in winter and wheels that developed flat dots.
The $ 60 million would be funded primarily through debt, city staff suggests, and keep in mind that any additional funding needs for the Stage 2 LRT will be reassessed in 2023.
The request for more funding comes when a public inquiry investigates in great detail the financial and technical negotiations during stage 1 of the LRT. The investigation has heard during public hearings that the $ 2.1 billion price for the initial trunk and tunnel of the Confederate Line was only an early estimate, but that politicians turned that figure into the budget to which it went. allocate the project.
Staff noted in their new report that the Stage 1 contingency budget was $ 115 million, or 5.1 percent of the total, and a larger percentage than the Stage 2 contingency fund. .