2009-2011 Capital Spending Plan The means to ensure public transit growth
2009-2011 Capital Spending Plan
The means to ensure public transit growth
Montréal, November 20, 2008 –The Société de transport de Montréal (STM) unveiled its three-year capital spending plan (PTI) covering investment expenses for 2009-2011 and their impact on subsequent years.
According to STM Board Chairman Claude Trudel, “The investments we need to make in the next three years are aimed at maintaining and replacing STM assets, as well as improving transit services provided to clients throughout the greater Montréal area.”
With the help of its financial partners, the STM will spend nearly $2 B on subsidized projects, some $26.4 M on non-subsidized projects, and $5.4 M on other miscellaneous projects, during the 2009-2011 period.
The Métro network’s share of these investments represents $1.04 B and will mainly serve to uphold the system’s reliability and improve customer satisfaction. These investments will also allow Phase II of the Réno-Systèmes and Réno-Stations programmes to be carried out, in addition to replacing métro cars first introduced into service in 1966. These projects alone account for 90% of all métro-related investments.
As for the Bus network, Mr. Trudel indicated that “More than $900 M will be invested to increase the frequency of service, ensure the delivery of quality services and improve customer information. This money will specifically be used to finance the purchase of buses, implement bus priority measures along strategic roads and traffic arteries, pursue the infrastructure programme and, lastly, replace some operating support systems and other obsolete equipment.”
Finally, projects in other sectors account for 2.9% of the STM’s overall investment expenses, for a total of $57.8 M.
According to the terms of the current assistance programmes available to public transit, 98.4% of these projects would qualify for a subsidy. The federal, provincial and municipal governments would cover 68% of investments, while the STM would assume the difference, 32%, or some $637M over three years. “These investments will continue to exert a lot of pressure on our operating expenses. Indeed, while net debt servicing is set at $69.7 M in 2009, it will reach $117.8 M in 2011. A 169% increase in debt servicing largely contributes to increase the structural deficit confronting the STM. For this reason alone, it is imperative that public transit be granted new, stable and recurring sources of funding, otherwise the STM will be unable to ensure its development or sustain its growth,” concluded Mr. Trudel.
The capital spending plan, PTI, is available (in French only) on the STM website by clicking here.
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