The cost of the Metro Blue Line extension is expected to eventually reach the projected maximum of $6.4 billion. The Société de transport de Montréal (STM) says it is respecting the cost agreed with the Quebec government last spring.
The executive committee of the City of Montreal approved Wednesday morning a loan by-law of 6.1 billion dollars for this project piloted by the STM and awaited for decades.
Last March, the Minister responsible for the Metropolis, Chantal Rouleau, announced in the company of the Minister of Canadian Heritage, Pablo Rodriguez, and the Mayor Valérie Plante, that an agreement had been reached between Quebec and Ottawa for the financing of the project. A total budget oscillating between 5.8 and 6.4 billion was then mentioned.
According to the documents related to the STM borrowing regulations, including long-term interest, the bill will therefore reach the maximum amount envisaged, ie 6.4 billion. Added to this is a sum of 23.9 million. But the STM maintains that it is a “special operating budget” required for the realization of the project. “These expenses [de 23,9 millions] are not eligible for government funding and will be subsidized from the STM’s debt service,” said Philippe Déry, corporate public relations advisor for the organization, in an email. “The loan by-law approved by the STM therefore respects the maximum cost of the established project announced by the government. »
The final business case confirming the investments of 6.4 billion will however have to obtain the approval of the Council of Ministers next December.
In this envelope, the STM has provided an amount of nearly $820 million as a reserve for contingencies. We mention in particular the market conditions that could be unfavorable and the problems that could arise due to the nature of the land.
The share assumed by the Government of Quebec amounts to 4.4 billion and that of Ottawa to 1.3 billion. For its part, the Regional Metropolitan Transport Authority (ARTM) will pay 310 million and the Montreal Transport Company, 75.2 million.
Bill inflation
Since the project was first announced in April 2018, the cost of extending the Blue Line has steadily climbed. Four years ago, its cost was estimated at $3.9 billion, before rising to $4.5 billion in 2019. Then, in the summer of 2020, due to rising land expropriation costs and of the increase in construction costs, the bill jumped to 6 billion, before inflating to 6.9 billion in 2021. Faced with this meteoric rise, the STM had to review the project. Some secondary entrances have been eliminated and the Anjou terminus has been reconfigured.
The new section of the blue line will include a tunnel of approximately 6 kilometers and 5 stations. Its commissioning is scheduled for February 2029.
Last April, the STM issued a notice of qualification for the tunnel boring machine that will be required for the excavation work. The bids received will be analyzed this fall and the call for tenders will be published later this year.