The manufacture of the 34 trains of the Quebec tramway and their maintenance over a period of 30 years will cost 1.34 billion dollars, according to an update presented Thursday by the City.
Quebec initially estimated the cost to manufacture the trains for its future tramway at just under $400 million. Alstom, the only bidder after Siemens withdrew, initially wanted to charge $677 million. “Hundreds, even thousands of hours of negotiations” have lowered the price of 108 million dollars, explained Mayor Bruno Marchand, to establish it at 569 million.
This amount, paid by the City of Quebec, represents an increase of 43% compared to the first estimate. The inflationary context, which saw a surge in the price of materials from 2020, largely explains this increase, which is mainly linked, according to Mathieu Hébert, accounting analyst for the Québec tramway project office, “to the market context in which we are now. »
The City gives itself the option of ordering five additional trains if traffic requires it. Alstom will also have the mandate to train a first cohort of tram operators and to maintain the equipment for three decades.
The trains that will run in Quebec are the Citadis Spirit, the same ones that cause many headaches — and, perhaps, some regrets — in Ottawa. However, the situation will be different in the Quebec capital, assures Daniel Genest, director of the project office.
“We tend to balance all the wrongs of this tramway on Alstom, which is not the case,” he explained Thursday. A report on the rout of the light rail in Ottawa focuses on its setbacks on the bad decisions of public authority and political decision-makers. In Quebec, the French company will have had several years to refine its train, with in particular two orders in the Toronto region.“Alstom has no interest in coming to deliver, design and manufacture trams at the cheapette »further pleaded Mr. Genest, because it is he who will have to assume “the maintenance over 30 years. »
An “open heart” negotiation
The contract negotiated between Alstom and the City of Quebec includes a second component, associated with the maintenance and operation of the trains over a period of 30 years. The French company initially requested $1.4 billion for this phase, while the City rather estimated the cost at $709 million. The difference of around 200% was explained by a different risk assessment of annual inflation over a 30-year period.
Finally, the bill for the maintenance and operation of the trains amounts to 768 million dollars before taxes, a difference of 8% compared to the initial evaluation. “It took four solid months to negotiate with people from Alstom, explained Daniel Charest, but the wisdom of the people who advised us was to take the time to do things properly. We sat down [et] we performed open-heart surgery on the proposal of Alstom. »
It is the Réseau de transport de la Capitale that will have to pay the amount, which is approximately $25 million per year for three decades. The negotiated amount takes into account an annual indexation of 2%. If this rate were to increase by one percentage point, the RTC would have to assume an additional cost of $269 million.
This bill of 768 million dollars should not be included in the calculation of the total cost of the tram, evaluated, according to the most recent estimates, at nearly four billion dollars. “When the Montreal metro is said to cost six billion to extend a line, we are not talking about what it will cost for the next 30 years to maintain the trains, the structure and ensure that it is well repaired, indicated Bruno Marchand. Here, for transparency, we are talking about the two amounts. »
One year delay on delivery
The City has confirmed that the tramway project will be delayed by one year, attributable to a four-month delay granted by Quebec to the consortia competing to design the infrastructure that will accommodate the trains assembled by Alstom from 2025 at its plant in La Pocatiere.
The submission of tenders should be completed in mid-August for this second contract, which also includes the design and manufacture of the infrastructures as well as their maintenance for 30 years.
The delivery of the tram, first promised for 2028, will finally take place only in 2029 at the earliest, indicated Daniel Genest. The contract negotiated with Alstom must still receive the approval of the municipal council and the agglomeration council. The final signing will take place, if all goes as planned, on April 24. Before starting the construction phase, the City and its partner will also have to obtain the green light from the Council of Ministers, expected for November 10, or 22 months to the day, after the call for qualifications.