C-train funding confirmed, but no date set for delivery

Green Trip grant arrival critical for financing

The province is sending some green Calgary’s way to help pay for a costly C-train expansion, but it’s anybody’s guess when the $473 million will arrive.

The provincial grant from the green Transit Incentives Program, or Green Trip, was confirmed two weeks ago.

The Feb. 16 letter sent by Transportation Minister Ray Danyluk says the money isn’t available until 2013 or later.

The funds will pay for 50 light rail train cars, construction of the west LRT line, and the pre-design of the southeast transit way.

The city can borrow against the incoming money; however, that comes with its own problems, said Mayor Naheed Nenshi.

“The challenge is that we have no idea when the money is coming. Of course, as you borrow against it, you pay interest,” Nenshi said.

“We’re at the point where we can move forward, but we have to learn if we can actually sign a contract without having the money in the bank. We need to figure out if, legally, we can do that when we don’t know when the money is coming,” said Nenshi, who called the provincial grant “fantastic.”

Administration is looking into when the city can get the new train cars, which can take up to three years to order and receive.

“Now that we know we’re going to get money eventually, can we go ahead and make the orders for those train cars?” Nenshi said.

The cost-sharing Green Trip funding was announced by the Ed Stelmach government in 2008 as a key component of the province’s carbon-reduction efforts.

It was conceived as a $2-billion investment in building and expanding transit networks to get cars off the road.

Based on the city’s submission, Calgary is getting up to $473 million, or just over 66 per cent of the estimated eligible project costs.