Alstom allowed to bid on $1.2B Montreal subway car deal

The Quebec Superior Court has recognized Alstom Canada's right to bid on a $1.2 billion project to replace Montreal's aging metro car fleet.

In a decision released Wednesday, Superior Court Judge Joel Silcoff ruled the French multinational company has a right to tender for the replacement of Montreal's subway cars, a contract the province had previously negotiated with Bombardier.

The decision will likely delay efforts to rejuvenate Montreal's metro system, said Montreal Transit Corporation president Claude Trudel.

Montreal's subway cars haven't been replaced since the metro system first opened for Expo '67.

The Quebec government announced in May 2006 that the MTC was negotiating with Bombardier to replace about 336 of its rubber-tire subway cars starting in 2010.

Alstom Canada filed legal action against the province in June 2006 arguing it was playing a game of "favouritism" and broke the law by allowing the transit agency to negotiate exclusively with Bombardier without any competitive bids

The French multinational maintained that the contract should be subject to a public tender instead of a mutual agreement to negotiate with Bombardier.

Alstom said it was prepared to draw on its international experience building subway cars and transfer that know-how to its plants in Sorel-Tracy, Que. and Calgary.

At the time the Quebec government said Bombardier was the only Canadian company to produce subway cars.

Wednesday's court ruling means Alstom will be able to submit a bid for the hefty contract, unless the MTC decides to appeal.

In May 2007 superior court rejected a request from Alstom for an injunction to stop talks between the MTC and Bombardier.

The MTC is studying the ruling and hasn't yet decided whether it will appeal, Trudel said.