MONTREAL, Oct. 16, 2012 /CNW Telbec/ - The Board of Trade of Metropolitan Montreal submitted the report of the
think tank on tramway funding to Montréal Mayor Gérald Tremblay today.
This report evaluates the different approaches to financing the
investment cost of a tramway in Montréal. The think tank was formed at
the Mayor's request, who wanted the Board of Trade to study tramway
"The tramway is an efficient mode of public transit, one that would
re-energize the urban network and increase urban density," says Michel
Leblanc, President and CEO of the Board of Trade of Metropolitan
Montreal. "However, the state of public finances makes it impossible to
complete all of the region's public transit projects. The Metropolitan Land Use and Development Plan features a list of projects that total $23 billion, including the
tramway. So our mandate was not to offer an opinion on the value of
building a tramway or to choose one plan over another. We were to
analyze the different tools and sources of financing for the project."
Aside from current sources of funding for public transit, the think tank
identified different methods used in North America and Europe to
finance urban public transit projects. What emerges from the analysis
is that financing tools make it possible to harness the increased land
value generated by the construction of a tramway. Unlike other transit
projects, the tramway promotes urban development and generates
increased land value along its lines of deployment.
The international benchmarking also concluded that no other tramway
project is self-financing and that financial contributions from urban
agglomerations are always accompanied by contributions from higher
levels of government. "If the Ville de Montréal were to finance this
project alone, it would put enormous strain on public finances," Mr.
To ensure the success of a possible tramway project, the think tank
recommends putting into place sound, flexible and efficient project
governance so that the project is completed according to well-defined
schedules and parameters. Mitigation measures drawn from best
international practices must be put in place to communicate downstream
with resident and merchants. The think tank also recommends
implementing compensation mechanisms similar to those used in Europe.
"This report shows how important fluid transit is for the Board of Trade
and the business community," Michel Leblanc says. "I would like to
thank the members of the think tank for their expertise and exemplary
commitment during this exercise."
While there was broad consensus within the group, the conclusions of the
report may not be considered as a unanimous commitment or bind the
think tank member's organizations.
Recommendations of the think tank
Recommendation 1: That the Ville de Montréal consider the avenues
explored to fund the first line of the Montréal tramway and confirm the
financial participation of the different partners.
Recommendation 2: That the Ville de Montréal make the administrative and
legislative changes necessary for the tramway to have its own source of
Recommendation 3: That the Government of Québec consider a minimum
contribution equal to the investment that it would make in the bus
network if the tramway were not built.
Recommendation 4: That the partners define how the project will be
completed to allow for more effective sharing of risks and
responsibilities between parties and resource optimization for the
public sector and, if applicable, that they undertake efforts with PPP
Recommendation 5: That the partners create the conditions necessary for
sound, flexible and effective project management governance.
Recommendation 6: That the Ville de Montréal put in place communication,
support and mitigation measures upstream from the project to ensure its
Link to the report: www.ccmm.qc.ca/rapport_tramway (in French only)
About the Board of Trade of Metropolitan Montreal
The Board of Trade of Metropolitan Montreal is made up of some 7,000
members. Its mission is to represent the interests of the business
community of Greater Montréal and to provide individuals, merchants,
and local businesses of all sizes with a variety of specialized
services to help them achieve their full potential in terms of
innovation, productivity, and competitiveness. The Board of Trade is
Quebec's leading private economic development organization.
SOURCE: BOARD OF TRADE OF METROPOLITAN MONTREAL
For further information:
Advisor, Media Relations
Board of Trade of Metropolitan Montreal
Phone: 514 871-4000, extension 4015
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