In a memo sent to council on Thursday, the city treasurer says the repeated delays of Ottawa’s LRT system have cost the city almost $33 million so far.
According to the memo, the bulk of the cost is associated with the extended operation of buses in the city.
While the city has offset the majority of these costs so far by not paying RTG, that money will eventually have to be paid. All in all, the memo said, the city is out $32.9 million.
These costs were initially calculated for the June 30 deadline, which RTG has subsequently missed. The costs could increase now that the new deadline is set for early August.
According to the city, each monthly delay in these payments generates an estimated $400,000 in additional interest income. This is on top of the $4 million fee that RTG is subject to due to the previous delays — $1 million per delay.
WATCH: (March 4, 2019) Ottawa city councillors, staff invited to experience LRT simulator