Report: OC Transpo Withheld Confederation Line Payments

Written by William C. Vantuono, Editor-in-Chief
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Screenshot ofa CTV News video.

Ottowa’s public transportation agency OC Transpo withheld C$15.1 million in payments to Rideau Transit Maintenance (RTM) in 2023 due to maintenance problems and extended shutdowns on the troubled-plagued Confederation Line, according to a CTV News report.

“A new report for the Finance and Corporate Services Committee on the City of Ottawa’s 2023 budget spending shows the multi-million dollar ‘performance deductions’ OC Transpo claimed when the light rail transit system was out of service last year,” CTV reported. “The O-Train line was shut down for 28 days last July and August after an issue was discovered with one (wheel) bearing on an LRT vehicle during routine inspection. When service resumed, RTM was running single-car service along the line between Blair and Tunney’s Pasture stations. LRT service was also disrupted twice in the winter and spring of 2023 due to freezing rain.”

The city’s report does not provide a breakdown on the performance deductions. The C$15.1 million in withheld payments during LRT shutdowns was partially offset by C$3.1 million replacement bus service costs.

“Under the project agreement between the city and Rideau Transit Group, the city can withhold payments for service not provided along the Confederation Line,” CTV reported. OC Transpo Transit Services General Manager Renee Amilcar told reporters during a July 24, 2023 media briefing when the LRT was out of service that “normally, with the [project agreement], we have we don’t pay RTG when they don’t deliver the service.” OC Transpo pays Rideau Transit Group/Rideau Transit Maintenance approximately C$5 million a month to maintain the Confederation Line. Ottawa signed a 30-year DBFM (Design-Build-Finance-Maintain) agreement with the Rideau Transit Group. OC Transpo operates the system with its own employees.

Further Reading: TSB: Ottawa Confederation Line Remains Hazardous

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