So far, the City of Quebec has met all “the conditions necessary for the success of the tramway project”, notes the auditor general of the national capital in his most recent report presented on Tuesday. However, the AG notes a lack of reliability in the estimates made by City staff.
Despite a cost overrun of $600 million, which brings the project’s estimated bill to $3.965 billion, the house remains in order, according to Michel Samson.
The Auditor General points out that contract management is adequate, with a few exceptions. Thus, the contracts awarded to the Tram-Innov consortium and to Systra-Canada, whose cumulative value has jumped by 94 and 32% respectively since their initial estimate dating from 2018, have been well managed, according to Mr. Samson.
He regrets, however, that the costs associated with legal services related to the tram have exploded in the past four years. The $375,000 bill estimated in 2018 by the Réseau de transport de la Capitale rose by 1,067% in 2019, then by 2,373% in October 2021. “We can hardly consider that this is a modification reasonable,” writes the auditor general about this contract, the price of which is now approaching $10 million.
Mr. Samson also notes “a lack of reliability” in the estimates made by City staff “unlike the estimates made by subcontracting”. Of six estimates studied by the auditor general’s office, “only two were found to be reliable.”
“This situation causes significant discrepancies between the amounts of the contracts awarded and the amounts initially estimated by City staff,” notes Mr. Samson.
More details to come.
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