Funding confirmed for Ottawa light rail transit

Memorandum of Understanding Signed by Canada, Ontario and Ottawa

Ottawa, Ontario, May 9, 2005 - The Honourable John Godfrey, federal Minister of State (Infrastructure and Communities), David McGuinty, Member of Parliament for Ottawa South, the Honourable Madeleine Meilleur, Ontario Minister of Culture and Minister Responsible for Francophone Affairs, Phil McNeely, Member of Provincial Parliament for Ottawa-Orléans, and His Worship Bob Chiarelli, Mayor of Ottawa, today announced the signing of a Memorandum of Understanding for the north-south corridor of the Ottawa Light Rail Transit project.

"The Government of Canada is committed to supporting Ottawa's long-term development plans, while moving forward on our commitment to climate change," said Minister Godfrey. "This project is part of the New Deal for Cities and Communities — working in partnership with municipalities and provinces toward a vision for sustainability."

"Today's event is great news for Ottawa, because better transit means a stronger, more prosperous and sustainable future," Minister Meilleur said. "Our investment in the expanded Light Rail Transit system will help reduce gridlock, provide cleaner air and improve the overall quality of life the city offers."

The Memorandum of Understanding (MOU) reaffirms each partner's financial commitments, outlines the policies and activities that Ottawa will undertake to support the project, and provides the City's forecasted project schedule. The MOU also confirms that the tendering process will be competitive, open and transparent.

The governments of Canada and Ontario will each contribute up to $200 million to this project. The City of Ottawa will match this funding and invest the balance of the project's estimated cost of $650 million to $700 million.

"Ottawa's new north-south transit corridor will create an efficient link to downtown for thousands of people, helping to keep our city core vital and attractive," said Mr. McGuinty.

"The Ontario government is pleased to be working with our federal partners and the city to support one of Ottawa's highest priorities – stronger public transit," said provincial representative, Mr. McNeely. "This investment will help us build strong, well-planned communities with reliable, cost-effective transit to get around town."

The MOU builds on the project that was proposed in May 2004, when federal and provincial funding was first announced. The project is projected to run west from the Rideau Centre through downtown Ottawa to LeBreton Flats, turning south to the area of Leitrim Road, then west through the city's Riverside South Community and across the Rideau River, to end at Woodroffe Avenue in the community of South Nepean. The project also includes construction of the new Strandherd-Armstrong train/car bridge that will connect communities on the east and west sides of the Rideau River.

"Light Rail Transit holds the key to successfully meeting the city's growth needs over the next two decades," said Mayor Chiarelli. "By adopting Smart Growth principles and working now to bring light rail into new and growing communities, we can shape new travel patterns for residents and support our long-term objectives of achieving 30 per cent transit use by 2021. The positive impact on the environment and on residents' quality of life will be significant."

In accordance with federal and provincial requirements, the City of Ottawa must meet applicable federal and provincial conditions, including environmental assessments, a detailed ridership study, a business case and the negotiation of a formal contribution agreement. The City is targeting construction on the north-south Light Rail Transit corridor to start in summer 2006, with service beginning in the Fall of 2009.

In support of the New Deal for Cities and Communities, the Government of Canada works with provinces, territories and municipal governments, as well as the private sector, to meet strategic infrastructure needs throughout the country. The federal contribution will come from the Canada Strategic Infrastructure Fund, which supports large-scale strategic infrastructure projects that improve quality of life and further sustainable growth.

Today's announcement further reinforces the commitments of the Governments of Canada and Ontario towards sustainable cities and communities, through investments in public transit infrastructure that provide a better quality of life by limiting gridlock, controlling urban sprawl and protecting greenspace.

For further information contact:

Carla Ventin
Office of the Minister of State
(Infrastructure and Communities)
(613) 948-2688

Wilson Lee
Minister's Office
Public Infrastructure Renewal
(416) 325-8735

City of Ottawa Media Relations
(613) 580-2450
www.ottawa.ca

Infrastructure Canada
Communications and Promotion
(613) 948-1148

Jim McPeak
Ministry of Public Infrastructure Renewal
Media Relations
(416) 212-7499
www.pir.gov.on.ca