Toronto’s Airport Link in Public Hands After Collapse of PPP Deal – From the Transport Politic


Interesting news as the same players are involved with the RAV/Canada Line. Makes one think what secret sweeteners the province used to masquerade the Canada Line as a P-3?

This must bode ill for the Evergreen Line financing, as the government wants to induce business to invest in a P-3 arrangement to find the final $400 million investment to build the gold-plated metro line.

Oh yes, just $400 million would finance a Vancouver to Coquitlam/Port Moody, Maple Ridge TramTrain service!

Toronto’s Airport Link in Public Hands After Collapse of PPP Deal

In pulling out, engineering firm SNC-Lavalin cites concerns that project wasn’t going to have its operations subsidized.

For investors interested in infrastructure projects these days, there is apparently a lot of low-hanging fruit to pick. This, at least, is the argument made by Montréal-based contractor and engineering firm SNC-Lavalin, which has pulled out of a years-long commitment to operating Toronto’s planned airport connection train because the regional transportation authority refused to subsidize the service.

The construction of a new two-mile corridor between an existing rail track and the airport was to be fully paid for by government investment. The Canadian federal government pushed a public-private partnership (PPP) deal for the project’s operation in the early 1990s in exchange for a commitment for national funds to back up local money.

According to an SNC-Lavalin spokesman, “When there are so many other infrastructure projects that are proceeding at this time, the banks are not interested in projects without a fixed income stream.” This leaves regional transit agency Metrolinx in charge of the program’s implementation and responsible to pay for operating shortfalls if necessary. Other transportation organizations hoping that assembling a PPP will allow for a transit operation with no public subsidy should put their dreams in check.

For the rest of the story………


Tags: , ,

One Response to “Toronto’s Airport Link in Public Hands After Collapse of PPP Deal – From the Transport Politic”

  1. rei Says:

    Wasn’t $400m the initial estimated cost that Toronto was supposed to chip in?

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: