Home | WebMail | Register or Login

      Calgary | Regions | Local Traffic Report | Advertise on Action News | Contact

Ottawa

Siemens wants to bid on new LRT project

Siemens, the company that won nearly $37 million from Ottawa after the city cancelled a light rail contract, wants a shot at bidding on the current proposed $2.1 billion LRT project.

Won settlement from city over last contract

The company that won nearly $37 million from Ottawa after the city cancelled a light rail contract wants a shot at bidding on the current proposed $2.1 billionLRTproject.

Siemens is alsolooking for ways around a relatively new regulation which gives Canadian manufacturers an unfair advantage, it says.

When the city posts a request for bids on the project later this year, Siemens will be among the bidders, spokespersonD.L. Leslie said.

"I can confirm that we're very much interested in this project."

But Siemens, a multinational based in Germany,is concerned about Ontario's 25-per cent domestic content rule, which requiresthat transit vehicles bought withprovincial funds must be at least one-quarter Canadian made.

Siemens manufactures its trains in California, and Leslie saidthe three-year-old regulation gives Canadian manufacturers like Bombardier an unfair advantage. Changing the rule"would make a fair and even playing field for all competition."

Siemens approached both the city and the province about waiving or amending the policy, but the Ministry of Transportation said ithas no plans to do so, and a city hall source saidstaff are also shrugging off the company's complaint.

In 2006, aconsortium including Siemens won$778millioncontract to build a longer LRT that would have run on the surface through the downtown. Council later voted to kill that deal.

Siemens and the other consortium members sued the city for $177 million, settling for $36.7 million in 2009.

The current plan calls for a 12.5 kilometre line from Tunneys Pasture to Blair Stationwith a 3.2 kilometre tunnelunder the downtown.

With files from the CBC's Alistair Steele