QUEBEC — Ottawa and Quebec have to come up with their share of the cost of Montreal’s $5.5-billion electric light-rail network for the project to go ahead, Michael Sabia says.
And responding to criticism the new train network will not cover the east end, Sabia, CEO of the province’s pension fund manager, said he has no mandate to re-organize public transit in the Montreal region. That’s the government’s role.
In his annual appearance before the finance committee of the National Assembly, Sabia made it clear to the politicians that the massive project requires government aid.
Almost half of the cost, $2.4 billion, has to come from the taxpayer, he said.
“If they decide to not get on board with us, it is not our intention to continue to try to deliver this project,” Sabia said. “We said this from the beginning. This project needs the participation of Quebec and the participation of Canada.”
Announced last week, the Caisse de dépôt et placement du Québec project calls for the creation of a 67-kilometre network linking the South Shore, the West Island and Deux-Montagnes to both the airport and the downtown core.
At the time, Sabia argued the Caisse was taking most of the risk in developing the project.
Now it’s clear some of the money for the rail system goes on the list of funds Quebec is seeking from the federal government’s new infrastructure plan. The province is also asking Ottawa for $1 billion in support for Bombardier.
Later, meeting reporters, Sabia was asked if the Caisse’s decision to not venture east with its train was financially motivated.
“No, no, no, not at all,” Sabia said. “But we are not responsible for all public transit for the greater Montreal region.
Sabia said the Caisse examined two projects, a train line to the airport and one over the new Champlain Bridge. The announcement made last week is the merger of the two.
“The east side of the island was not part of it,” Sabia said, noting the new line will nevertheless be connected directly to existing and to-be-built transit infrastructure including the proposed blue line métro extension to the east.
“But as I said, we are not responsible for planning the island of Montreal’s public transit system. It’s not our trade.”
Sabia’s answer was shored up by Quebec Finance Minister Carlos Leitão, who sat beside him for the committee hearing.
Responding to a question from Coalition Avenir Québec MNA François Bonnardel, Leitão said the money Quebec will eventually put into the Caisse project will not stop it from going ahead with the blue line extension.
“No, it won’t impede us from doing other things,” Leitão said.
Caisse vice-president of infrastructure Macky Tall made it clear to the committee that the Caisse intends to open up the bidding process for Montreal’s project to an international audience which suggests if Bombardier rail wants in on the project it will have to fight for it.
Tall said the Caisse wants to see an “intense” competition between suppliers.
“It’s the only way to deliver the project at a reasonable cost,” Tall said.
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Map of new electric train system proposed for Montreal area by the Quebec government in April 2016. The plan is to have the system running by 2020.
