The construction of the Hurontario LRT, also known as the Hazel McCallion line, is facing significant financial hurdles, raising concerns about potential credit downgrades if construction targets are not met. Mobilinx Hurontario, the construction consortium awarded the $4.6 billion contract in 2019 to design, build, finance, and operate the line, is experiencing delays that have pushed back the project’s initial promised completion date of “Fall 2024.” Legal challenges in Toronto and Brampton have also surfaced, such as equipment not being returned, rental fees not being paid, and outstanding bills with subcontractors, totaling $2.7 million. These developments have prompted S&P Global Ratings to warn of potential delays in construction that could affect Mobilinx’s ability to repay its creditors, forcing Metrolinx to consider a global settlement. Despite these challenges, Metrolinx reports that progress is being made on the 19-stop Hurontario LRT route.
Construction progress on the Hurontario LRT line includes the installation of push boxes at the Port Credit GO station and under the Queen Elizabeth Way, as well as ongoing construction of the elevation portion of the LRT over Highway 403. Metrolinx has also completed track work at 30 out of 55 intersections along the corridor and constructed six out of 18 stops, with preparations underway for the delivery of Light Rail Vehicles at the Operations, Maintenance, and Storage Facility. However, a recent credit agency report highlighted new issues affecting the project, including track tolerance issues on installed portions of the track, forcing Mobilinx to make design changes and reprocure special tracks to accommodate LRT wheels.
The delays in construction have led to a financing problem for Mobilinx, as its timeline for completion is now uncertain. Private lenders provided hundreds of millions in loans to Mobilinx in 2019, but S&P Global Ratings warns that the consortium is at risk of a credit rating downgrade due to its diminishing cushion to repay lenders. Financial disputes have also arisen between Mobilinx and subcontractors, with lawsuits filed over unpaid bills for services provided. The potential delays and financial challenges facing Mobilinx are a concern for local Mississauga councilors, who fear these issues could impact the implementation of the Hurontario LRT project, which the city has long advocated for as its own rapid transit route.
Metrolinx has not publicly addressed the construction or financing issues facing the Hurontario LRT project, but it is now the third light rail project in Ontario facing completion problems, following the years-delayed Eglinton Crosstown LRT and Finch West LRT in Toronto. These delays have resulted in lawsuits between construction consortiums and Metrolinx, casting uncertainty on when the lines will be operational for transit riders. The provincial transit agency has withheld final payments from the consortiums, including Mobilinx, as leverage to address these challenges and negotiate financial settlements. Although the specific amount withheld from Mobilinx is unclear, efforts are underway to resolve pending claims through a global settlement with Metrolinx, potentially impacting the project’s credit rating.
Future expansion plans for the Hurontario LRT in Mississauga and Brampton, abruptly announced by Premier Doug Ford, have added another layer of complexity to the project. The extensions were intended to take the line north into Brampton and revive a loop around downtown Mississauga. Details on the cost and completion date for these expansions have not been made public by the Ford government, and Metrolinx is currently working on planning and funding for the project. Despite the challenges facing the Hurontario LRT, efforts are being made to address construction delays, financial issues, and future expansion plans to ensure the successful completion of the project and provide rapid transit options for residents in Mississauga and Brampton.
