The Caisse du dépôt et placement du Québec said Thursday it put the controversial $10 billion REM de l’Est project on hold, as it has not yet met the social acceptability needed for a project of such importance.
Destined to be presented for public hearings at the Bureau d’audiences publiques sur l’environnement
this spring, the project is now on hold indefinitely so planners can
respond to criticisms of the project. That means the project likely
won’t be delivered by the original target of 2029.
“With
the magnitude of a project like the REM de l’Est, which is essential
for the east and northeast of Montreal, we place great importance on all
partners adhering to a common alignment,” said Jean-Vincent Lacroix, a
spokesperson for CDPQ Infra, a subsidiary of the Caisse. “Taking the
time to ensure such alignment before launching the BAPE process is
natural and necessary.”
First presented in December 2020, the project would see a driverless
electric train network built over 32 km and serve 23 stations in
transit-starved areas that aren’t covered by the métro network,
connecting the downtown core with Montreal North and
Pointe-aux-Trembles.
The project, however, has been the
subject of much criticism, specifically that the above-ground rails in
the downtown core will create an urban scar in the city’s landscape,
akin to another Metropolitan Expressway.
Montreal Mayor
Valérie Plante repeated on Thursday that the project must meet the
“winning conditions” that the city has already outlined in meetings with
CDPQ Infra, and it must also address all the concerns of the committee
of independent experts that have evaluated the project. So far, that has
not happened, she said.
“CDPQ Infra must ensure the success of the REM and do its homework so
that this can be an exemplary project,” Plante said in a statement.
“All the experts endorse the conditions outlined by the city since the
beginning of this process so that this project meets the standards of
Montrealers.”
Plante added that she wants the city to have a seat at the table so it can be part of the decision-making on how the project will be integrated into the urban landscape.
Others
have been more categorical in their criticism of the project. Longtime
urban planner and transit expert Florence Junca-Adenot said the project
would weaken existing transit systems by competing with them.
“Normally
when you build a new project, it should increase the use of public
transit and serve the needs of commuters. In this case, the REM de l’Est
does neither of those things,” Junca-Adenot told the Montreal Gazette
in February.
The Autorité régionale de transport métropolitain said last month
that CDPQ Infra should find “a better alignment between the commuting
needs, the urban settings it would cross, the proposed mode and the
construction costs.”
However, the city’s opposition
blasted Plante, saying she is endangering the future of the project, and
East End commuters will continue to be underserved.
“Due
to her lack of leadership, Mayor Plante is slowing killing Montreal’s
largest public transit project,” opposition leader Aref Salem said in an
emailed statement. “She has had more than a year to clarify with
stakeholders what she considers ‘an exemplary integration’ of the REM de
l’Est since its first announcement in December 2020.”
Junior
transport minister Chantal Rouleau, whose East End riding would be
served by the project, said the project needs to be improved, but it
must come to fruition to better serve the needs of commuters.
“At
this stage, it is premature to hold a BAPE,” she said in a statement.
“That being said, we want the BAPE to happen. It is necessary for a big
project such as the REM the l’Est. We are still confident that we will
come up with the best project for the East of Montreal.”
I wasn't going to touch this hot potato with a 10-foot pole.
But it's Monday, most people working at Ontario pensions are on break this week, so I decided to talk a little about REM de l'Est since it's closer to home.
Important preamble:Nobody at CDPQ or CDPQ Infra contacted me about this story and they definitely have nothing to do with my views below.
And since I don't shy away from controversial subjects, let me state right off the top this is Montreal politics at its worst and if this REM de l'Est project isn't delivered by the start of the new decade, the people living in Montreal's East End will pay the ultimate price because they will continue using subpar transit for their commuting needs.
Got that? It's not Mayor Plante and the bureaucrats advising her that will pay the price. They'll be long gone, collecting their fat defined benefit pension payments by then. It’s the working class and middle class increasingly living in the city's East End which will pay a very heavy price.
So why did the project get put on hold?
I reckon the folks at CDPQ Infra are fed up with the political nonsense and decided to once again open public discussions on the project.
But the real reason this project is being put on hold is because of special interests looking to torpedo the REM and now REM de l'Est.
These are architectural, urban planning and environmental interest groups who didn't like the "aesthetics" of the proposed REM de l'Est because god forbid we build it above ground and "expose our city to an eyesore".
"Let's build it underground," they say or just don't build it at all.
Great, sounds easy, except building underground will balloon the cost by ten times minimum and endanger our buildings in the downtown core.
After being discussed for decades, the Montreal Metro's Blue
line extension project is back on the rails for good and finally on its
way to realization, the Quebec government announced Friday.
But
the project will be more expensive than originally planned, and it is
three years behind schedule, set for completion in 2029.
The
Blue line extension, which in recent years had an estimated price tag
of $4.5 billion, is now set to cost $6.4 billion, said Chantal Rouleau,
the province's junior transport minister who is also responsible for the
Montreal region.
Rouleau announced the plan during a news conference Friday, alongside Montreal Mayor Valérie Plante.
Rouleau
confirmed the plan is still to add five more stations to the Metro
line — Pie-IX, Viau, Lacordaire and Langelier, with the terminus being
in Anjou.
The Anjou station will now be built under Highway 25,
and not on the parking lot site of Galeries d'Anjou — a plan that was
sharply contested by the shopping centre's owners.
Cadillac
Fairview and Ivanhoé Cambridge went as far as to launch a legal fight
when Montreal's transit authority, Société de transport de
Montréal (STM), filed an expropriation notice.
"The Blue line
will go to Anjou. The project has been enhanced to open up to an entire
population who will now have access to a public transit system worthy of
the name," said Rouleau in a statement.
The province says
moving the station to Highway 25 will provide access to the surrounding
neighbourhood's and the incoming light-rail network, known as the REM de
L'Est. However, that project is now on hold over a dispute with Montreal.
As for the Blue line extension, the province will foot much of
the bill, with the federal government expected to pitch in $1.3
billion.
Quebec officials also announced a $1.12 billion grant
to the Montreal's public transit authority, the STM, to continue
planning the Blue line project and fund the Metro's asset maintenance
and universal accessibility programs.
Provincial politicians last gathered for an announcement
regarding the project during the spring of 2018, six months before the
last provincial election.
Regardless of the delays, Montreal's mayor says this is something her administration wants.
"Our
administration has always made mobility a priority and we have worked
tirelessly to make the Blue line extension a reality," Plante said in a
statement.
Aref Salem, leader of the official
opposition, Ensemble Montréal, said residents of the Saint-Léonard and
Anjou boroughs have been waiting for this project for more than 40
years.
While it's good news for those who live in the city's
east end, Salem said, he criticized Plante for not maintaining "tight
control" over the project's progress.
"After numerous court
cases and a project bill that is increasing by $15 million every month,
it took the Quebec government to take the file in hand to finally move
forward," said Salem in a statement.
As you can read, the article clearly states that the project is now set for completion in 2029 at a cost of $6.4 billion instead of the initial estimate of $4.5 billion.
Think about that, extending the Blue line by nearly 6 km will end up costing just as much as the entire 67 km REM project.
All this to say it costs a lot more (ten times more) to dig underground and there are always delays and cost overruns.
It's also interesting to note there's no public outcry on the cost overruns concerning the extension of the Blue line which will amount to $2 billion more than initial estimates but everyone is up in arms over REM de l'Est.
It's beyond ridiculous.
I'm also fed up reading nonsense and disinformation emanating from the the Autorité régionale de transport métropolitain (ARTM), the Société de transport de Montréal (STM) and Exo,
which operates existing commuter trains.
They all have an angle to play and that's why they're spreading lies and disinformation on this project.
The point is, the REM de l’Est should not become a take-it-or-leave-it
proposition. If we’re going to spend $10 billion, it’s worth taking the
time to get this right. Not only is this important to ensure significant
amounts of public and private money are used wisely, it is also crucial
given the role transit projects play in shaping cities for generations
to come.
I'm not sure if Ms. Hanes is aware of the intense planning that took place for the REM but it's the same planning and consultations that are taking place for the REM de l'Est.
These are top-notch planners and engineers who know what they're talking about and CDPQ Infra has extensively consulted all stakeholders including the public.
Yes, $10 billion is no small chunk of change but it will balloon to $20, $30 billion or more if we succumb to the demands of every interest group (just look at my Blue line example and that's not just due to inflation!).
Or, more likely, they will kill this project and screw the hardworking residents living in the East and Northeast end of Montreal.
That's the real tragedy here.
Mayor Plante's "winning conditions" are not in the best interests of the people she is serving. Not when it comes to housing and not when it comes to transit needs.
I have more confidence in the CAQ government when it comes to making better decisions for the long-term prosperity of the city and province.
Anyways, I got my views out there, feel free to agree or disagree but the amount of nonsense I am reading these days on REM de l'Est really irritates me.
I hope the public consultations are fair but I fear they will be hijacked once again by special interest groups looking to kill the project.
Montreal's residents in the East End deserve better, a lot better.
Below, CDPQ Infra is proud to announce the REM Montréal-Est project! Easier to get around, time savings, connections with the existing network, plus a stunning view of the city and river. This new public transit network will further drive the development of Montréal-Est.
Think about it, getting to downtown Montreal from Cégep Marie-Victorin in 30 minutes, from Pointe-aux-Trembles in 25 minutes and from Maisonneuve Park in 10 minutes.
I also embedded a recent CTV News Montreal report on the project going over different views.
I still believe REM de l'Est will significantly improve the quality of life of people living in this area and immensely improve our city in every way.
I hope the provincial government takes control here and we get this project back on track (something tells me this project will be part of a campaign promise come next provincial elections).
Update: CDPQ Infra posted a comment, A better understanding of the model, which I encourage you to read here and below:
Why talk about efficiency when we should be talking about public transit? Are the two compatible?
First of all, let's remember that the mission of the Caisse de dépôt
et placement du Québec (CDPQ) is to make Quebecers' savings grow. This
is the very foundation that underlies all of its investments. But is
this search for profits incompatible with developing a quality
transportation solution?
Ultimately, the expected return is not guaranteed and will only be
achieved if the proposed transportation solution is adequate and meets
real needs. This is the basis of the link between our expertise and
public interest. This solution has to make sense in terms of service,
while being viable and achievable within a reasonable timeframe. Seeking
a return becomes a powerful incentive for efficiency, but cannot be at
the expense of the network’s acceptability and adoption by the
populace.
This is why the private sector is generally not attracted to this
type of investment, because the returns are generated over the long
term.
Ultimately, the more people who use the REM or the REM de l’Est, the
more revenue it will contribute to meeting the performance target. And
the more public transit users there are, the better it will be for
mobility, the environment and society’s collective well-being.
The purpose of CDPQ Infra
CDPQ created an infrastructure subsidiary, CDPQ Infra, to act as
principal contractor for major public infrastructure projects in Québec,
elsewhere in Canada, and around the world. Why? Because on a global
scale, the infrastructure deficit is growing and investments in major
infrastructure projects, including public transit, are not keeping pace.
Long-term investors, like CDPQ, can play an important role in bridging
this gap by providing capital and expertise.
It was during the financial crisis of 2008 that CDPQ realized that
infrastructure investments offered more stable and resilient returns in
the face of market fluctuations. In this context, CDPQ began building a
larger infrastructure portfolio. Now, rather than just investing in the
four corners of the world, the appeal is to use this capital to also
contribute to developing transportation here by creating a team of
dedicated experts. Hence the reason behind CDPQ Infra’s arrival.
A beneficial approach on several levels
The organization’s model is unique: acting as an investor and,
simultaneously, as principal contractor. In concrete terms, following a
mandate received from the government, CDPQ Infra ensures the realization
of a transportation project from A to Z, from planning to completion,
including consultations and financing. The company also assumes the
risks associated with the project: financial risks, construction risks,
traffic risks, etc. It is this risk taking that explains the desire to
identify a viable and realistic solution that will be able to see the
light of day.
For public authorities, this is a lever for ensuring the completion
of major projects, by contributing to part of the financing while
avoiding taking significant risks (cost overruns, delays, loss of
goodwill, etc.).
This model sparks curiosity even on a global level as governments are
looking for innovative ways to finance infrastructure projects which,
let’s not forget, are in deficit.
Example: Construction of the REM under way
In 2015, the Government of Québec asked CDPQ to study a structuring
public transit project for the Greater Montréal area. At the time, two
needs had to be met: a link to Montréal-Trudeau International Airport
and another to the South Shore. The file had not progressed for years
and it was then that CDPQ Infra, a CDPQ subsidiary, was given a mandate
by the government. After eight months of intensive studies, the
subsidiary submitted a solution that was able to meet both existing
needs with a single project: a 67-km, fully automated electric light
rail network with 26 stations. The REM was born.
Leading the way with a complementary approach
These are challenging times for public transit services, and the
health crisis does not help the financial environment, with many
operators calling for additional funding. This situation must not lead
to a decline in public transit, which would inevitably have consequences
for mobility and the environment. This means being receptive to other
funding structures and proposing new methods, and sometimes even a
paradigm shift.
This paradigm shift must not be at the expense of other networks. For
this reason, it is important to work closely with all transportation
companies and the ARTM. In this regard, CDPQ Infra has initiated new
ways of doing things that lead to innovation for all:
The mechanisms defined for land acquisition and expropriation in
Phase 1 of the REM paved the way for an approach that is now defined for
everyone, with Bill 66, in order to simplify the processes that were in
place and accelerate certain infrastructure projects that are important to society.
Contributions related to the sharing of increased land value, allowing a portion of the profit raised through future real estate developments to be reinjected into public transit, have given the ARTM additional leverage for the financing of any transportation project in the metropolitan region.
Beyond innovation, the introduction of a structuring transportation
network will boost the existing offer and the long-term efficiency of
the overall network:
The arrival of the REM will allow the redeployment of bus networks to optimize local service for the benefit of communities, and increase the number of trips.
Metro lines will become less congested during rush hour, attracting more customers over the long term.
The REM will encourage many users to leave their cars at home
and take public transit. Those who were already using public transit
will see their quality of service increase by avoiding long bus rides to
get to the metro.
With frequent service, the arrival of the REM will encourage more users to take public transit outside of rush hour and also use the metro, which will have several connections with the REM.
We need to rally behind a vision where networks are not in
competition with each other, but where each contributes more broadly to
providing the best possible service to users. Any new, modern metro line
increases the attractiveness of public transit in general, so all
networks can benefit. And let’s not forget that investments in public
transit generate benefits that go far beyond the economic aspect:
reduced greenhouse gases, gains in urban space and revitalization of
neighbourhoods, improved quality of life, time savings for users, and
much more.
REM and REM de l’Est: A collective success
If projects such as the REM and the REM de l’Est prove successful, as
CDPQ Infra hopes, the whole of Greater Montréal will benefit. Citizens
will have access to a modern public transit system that will serve
communities and contribute to neighbourhood development, as well as
generate long-term returns for Quebecers’ savings.
This is a great comment on the model and let me reiterate this: "We need to rally behind a vision where networks are not in
competition with each other, but where each contributes more broadly to
providing the best possible service to users."
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