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Queen's Park, Ottawa Fund LRT, Toronto Pays Overruns
13 Apr
Summary
- Toronto is responsible for any cost overruns on the new LRT line.
- The $3 billion Waterfront East LRT is planned for completion in the early 2030s.
- The provincial government confirmed the TTC will lead the project's development.
Toronto has finalized a funding agreement with Queen's Park and Ottawa for the Waterfront East LRT, a project slated for completion in the early 2030s. The $3 billion, 3.8-kilometer line's funding is shared across all government levels. However, provincial details indicate that Ontario and Ottawa will not cover any cost overruns, leaving the City of Toronto liable for potential budget increases. This situation echoes concerns from previous LRT projects in Toronto, which experienced significant cost overruns.
Concerns have been raised by city officials, including council members, about the financial implications for Toronto, particularly as the city manages its own infrastructure upkeep. The province has confirmed that the Toronto Transit Commission (TTC) will lead this new LRT project, differentiating it from recently completed lines managed by Metrolinx. While design updates have been provided by city hall's transportation expansion department, clarity on the lead for design and construction will be provided at a later date.
Transportation consultants suggest that placing overrun liability on the city encourages stringent cost management. The initial cost of $3 billion equates to approximately $789 million per kilometer, a figure influenced by necessary integration with Union Station. Experts believe lessons learned from past over-budget projects can help Toronto deliver the Waterfront East LRT within budget, drawing parallels to successful outcomes in other large-scale projects.
