Ontario transport authority releases statement on light rail PPP legal dispute

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Metrolinx, the regional transportation agency of the Canadian province of Ontario, has issued a statement on the current legal dispute with Crosslinx Transit Solutions (CTS), the consortium selected to design, build, finance, and maintain the Eglinton light rail transit (LRT) project.

The statement details that ​Metrolinx has filed an application in the courts to halt CTS' proceedings regarding the delays related to the construction and delivery of the project. CTS issued a Notice of Action early in July and is required to issue a Statement of Claim by 9 August 2018.

Metrolinx wants to settle the dispute out of court, through the contract’s dispute provisions, to ensure that construction is completed project by September 2021, as agreed in the contract. It is requesting that CTS immediately submit a schedule that is compliant with the contract and agreed operation start date.

The authority claims that since CTS indicated, five months ago, that they were struggling to complete their work program in line with their contracted schedule, it has been working closely and extensively with the developers to rectify their schedule, evaluate their assertions, and to help to improve CTS’s performance.

Both Metrolinx and Infrastructure Ontario believe that the majority of the issues raised by CTS are without merit and are their responsibility under the PPP contract. Metrolinx has called this lawsuit an "attempt to claim compensation for their own failures", namely the failure to complete design work on-time, which has had an extensive impact on permits, approvals, and on the delivery schedule.

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