City of Ottawa issues Notice of Default to Rideau Transit Group

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The City of Ottawa in Canada has issued a Notice of Default to Rideau Transit Group, the partnership responsible for maintaining the Confederation Line LRT project.

Rideau Transit Group is a general partnership formed by ACS RTG Partner Inc., SNC RTG Partner Inc., and Ellis Don RTG Partner Inc. Under the Project Agreement, Rideau Transit Group is responsible for the design, construction, and maintenance of the Confederation Line, including the vehicles and stations, and the performance of its sub-contractors. The City is also asking Rideau Transit Group to take a much more active role in compelling its key sub-contractors – including Alstom – to improve their performance on an urgent basis.

The Notice of Default is a contractual notice advising Rideau Transit Group that it is not fulfilling its obligations under its contract with the City. This escalation of the City’s legal rights is in response to Rideau Transit Group’s failure to provide reliable service with the vehicles, stations and across the system since service started last September. Rideau Transit Group will now have a duty to produce a plan and schedule to remedy these failures. There will be no interruption to rail service.

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