Montreal’s $5 billion rail project is delayed in blow to CDPQ

CDPQ Infra, owned by Canada’s second biggest pension fund, will delay the opening of a $5 billion light-rail transportation system in Montreal for a third time, a setback for a firm that hopes to export the concept around the world. 

The 67-kilometer (42-mile) rail line, known as the Reseau Express Metropolitain, is one of the largest construction projects currently underway in North America. The division of Caisse de Depot et Placement du Quebec launched it in 2015 and plans to operate it once it’s finished. If it proves successful, CDPQ Infra intends to sell and operate similar projects in other countries. 

The first leg of the REM, between Montreal’s downtown and the suburb of Brossard, was supposed to be ready in 2021. It was pushed to mid-2022, then December. The new target is next spring because of “exceptional and unpredictable events” such as the discovery of old explosive charges underground, supply chain problems, the war in Ukraine, and inflation, said Jean-Marc Arbaud, chief executive officer of CDPQ Infra. The infrastructure firm also wants to avoid launching it during the coldest part of the year in Quebec. 

“Users must have a high level of reliability,” Arbaud said. “Because of this exceptional context, commissioning would take place in the middle of winter, which is far from ideal for our partners and users.”

Last year, CDPQ raised the cost projection to C$6.9 billion ($5 billion) from an earlier estimate of C$6.3 billion. Costs will rise further, but Arbaud would not give a new number on Friday.

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The last commissioning of the 26-station line, which would link Montreal’s international airport to the city’s downtown, was expected in 2024, but a new schedule is being discussed with the airport authorities.

The Caisse de Depot had pledged to build a C$10 billion second phase of the REM in the eastern part of the island of Montreal, but the Quebec government pulled the plug in May to review the project because of local opposition.