Ottawa LRT Stage 1: 103 Lessons on Building a Better Rail Line

Note from the editor: The September issue included a column discussing the importance of lessons learned when projects do not go to plan. The challenges in the construction and operation of Ottawa’s Line 1 light-rail project (LRT), and a final report from the Ottawa Light Rail Transit Public Inquiry published at the end of November offers a chance to explore the topic more.

The opening of the Confederation Line, which is operated as OC Transpo Line 1 in Ottawa, Ontario, was supposed to be the delivery of “a transportation system worthy of one of the world’s leading capital cities.”

The 12.5-kilometer (7.8-mile) LRT project was the largest transportation infrastructure project in the city since the construction of the Rideau Canal in the early 19th Century. Even before the Sept. 14, 2019, opening, the line had experienced engineering challenges, such as a sink hole on Rideau Street, construction delays and animus among the project’s two key stakeholders: The city of Ottawa and Rideau Transit Group (RTG) and the consortium tasked with the design, construction, finance and maintenance of the first phase of the Ottawa LRT project through a public-private partnership (P3).

Following the light-rail project’s opening, the line continued to experience a series of incidents ranging from delays in service to maintenance issues and two derailments in a six-week window. The compounding issues prompted the government of Ontario to establish the Ottawa Light Rail Transit Commission at the end of 2021 and mandated the commission investigate the commercial and technical circumstances that led to the breakdowns and derailments of Stage 1 of the Ottawa LRT project.

Justice William Hourigan, a former chair of the litigation department at Fasken Martineau with more than 25 years of experience in law and public service, was appointed to serve as commissioner. After 18 public hearings, a P3 expert panel and nearly 100 interviews with various project stakeholders, the final 664-page report of the Ottawa Light Rail Transit Public Inquiry was released on Nov. 30.

The final report from the inquiry names several reasons to “why” the challenges arose and includes 103 recommendations for how to fix the ongoing issues with the line and ensure they do not reoccur on other major infrastructure projects.

The commissioner found several reasons behind the delivery of the unreliable light-rail line, including:

• The city chose unproven technology for the trains that strained the limits of what an LRT system could do.
• RTG did not coordinate the work of its sub-contractors and failed to ensure the integration of the various systems and components.
• An adversarial relationship developed between the city and RTG.
• The city rushed the LRT system into service before it was ready.
• RTG and its subcontractors did not provide adequate maintenance.

P3 Minus ‘Partnership’

The use of the P3 model was thoroughly examined in this report, with Commissioner Hourigan writing it is tempting to give a simple answer to the question, ‘Was the use of a P3 model wise?’ He cautions the answer is not simple.

The report notes the perceived benefit of a P3 model is the transfer of risk but notes this project was one where “the downsides to the perceived advantages of a P3 model were in many ways realized.” These included the city being left in a position with little insight or control, and when it enforced its contractual rights, stoked an adversarial relationship with RTG. Additionally, the entity that signed the project agreement and companies performing subcontracts did not work effectively together.

“The ultimate result is the city’s biggest infrastructure project risks being operated and maintained though a largely dysfunctional partnership, which can come with substantial legal costs,” the reported included.

Hourigan said while the city believed the P3 model was its only choice, market shifts, specifically with large contractors not as eager to bid on risk-heavy large projects, may make the P3 version used to deliver the first stage of the Ottawa LRT project obsolete.

“I recommend that all project delivery models be considered and that proceeding with a preconceived notion of the optimal model should be avoided. Second, I note that contracts for transit projects have changed since the [Ottawa LRT State 1] project and recommend that government agencies should be responsive to changing market realities. Third, I propose a set of objective criteria to be used to assess the best delivery model for a given project,” Hourigan wrote.

In response to the P3 evaluations in the report, the Canadian Council for Public-Private Partnerships (CCPPP) issued a statement pushing back on the reports assessment that a similarly structured P3 project would not exist in the future

“While it is true there are many options in the procurement ‘toolbox’ for governments to consider, public-private partnerships have a demonstrated track record where the model delivers value, innovation and sustainability for taxpayers,” said Lisa Mitchell, president and CEO of CCPPP.

Mitchell notes the P3 model has been used to deliver everything from hospitals to highways to transit systems and wastewater plants.

“The model was adopted to combat the all too frequent delays and cost overruns experienced on traditionally procured projects – something upon which the model has time and again delivered,” Mitchell said.

Mitchell’s statement noted the complex nature of the projects like the Ottawa LRT Stage 1 and explained “a singular transit project is never an island in and of itself.”

“The Council emphasizes that the third ‘p’ in P3s — partnerships — is arguably the most critical. We commend the inquiry for stressing how partnerships are key to successfully delivering, operating and maintaining infrastructure while also sustaining and growing public trust. A strong partnership between the public and private partners ensures challenges are met and resolved together, striking a balance that avoids a zero-sum game in order to fully achieve the long-term benefits of the agreement. Collaboration is a necessity,” Mitchell said.

What Happens Now?

The second stage of the Ottawa LRT project is well underway, and with the government of Ontario committing to invest up to C$1.2 billion (US$880 million) in the second stage of the project, the pressure to fix what is broken is immense. Additionally, ongoing maintenance issues with the first stage will need to be addressed, specifically the wheel/rail interface.

The day after the report was published, Ontario Premier Doug Ford said the project was in “shambles” and “stunk to high heaven” and criticized the former Ottawa Mayor Jim Watson and former Ottawa City Manager Steve Kanellakos, who resigned Nov. 28, for their lack of transparency with the project.

Ottawa Mayor Mark Sutcliffe, who assumed office 15 days before the final report was published, noted he shared the “frustration and disappointment of so many Ottawa residents” in the project and laid out three steps the city will take to implement the recommendations and begin to fix ongoing issues with the rail service.

Mayor Sutcliffe’s three-point plan includes directing city staff to develop an action plan to implement key recommendations, ensure there is increased monitoring and appropriate oversight of the system and ensure transparency and regular reporting about construction and maintenance is shared with both the city council and the city’s finance and economic development committee. He said these updates will include timely updates on system performance, testing and modifications to safety and reliability criteria.

When asked about how he plans to build back trust in Ottawa citizens, Mayor Sutcliffe returned to the foundational promise of the Ottawa LRT project: Quality service.

“It’s all going to come down to the service people receive, and that’s what’s going to restore their confidence,” Sutcliffe said. “I’m hopeful if we adopt these recommendations and deliver a better service for people they will use the train more often.”

RTG said it looks forward to working with the mayor, city council and city staff to address the issues raised in the report.

“We acknowledge that all parties, including RTG and its subcontractors, have work to do to restore the public’s confidence in the city’s light-rail system. That work starts with a renewed commitment to working together on a path forward in the spirit of partnership required of all of us,” the consortium included in a statement. “We have listened, engaged in and taken this process seriously. We know Ottawa’s LRT is important to the community – connecting people to their friends, families, jobs and activities. We would like to reiterate our commitment to continue to improve the safety and reliability of Ottawa’s LRT for the benefit of Ottawans.”