The Hurontario LRT project, also known as the Hazel McCallion line, is facing significant financial challenges that could lead to a credit downgrade if construction targets are not met. Mobilinx Hurontario, the construction consortium responsible for building the 18-km line, has struggled with construction and financing issues, leading to delays and uncertainties about the project’s completion date. Legal challenges, such as disputes over returned equipment and unpaid bills with subcontractors, have also surfaced, causing further complications for the project. A report from S&P Global Ratings highlighted construction delays that could impact Mobilinx’s ability to pay off creditors, prompting Metrolinx to consider a global settlement.
Despite facing construction delays, Metrolinx has reported that Mobilinx has made progress in completing the 19-stop Hurontario LRT, with key installations such as push boxes and the elevation portion of the line already underway. However, issues related to track procurement and alignment tolerance have been identified by the credit agency report, resulting in delays on certain sections of the track. Mobilinx has been forced to make design changes and reprocure special tracks to address these issues, further complicating the project’s timeline and financing situation.
The delays in construction have created a financing problem for Mobilinx, as its timeline for completion remains uncertain. The consortium secured loans from private lenders in 2019, but S&P Global Ratings now warns of a potential credit rating downgrade due to a lack of repayment cushion. With ongoing delays and financial challenges, the project’s risks are being closely monitored, and discussions about interim relief and schedule extensions are underway to address the situation. The financial issues surrounding the Hurontario LRT project have raised concerns among local officials, including Mississauga City Councillor Joe Horneck, who hopes that implementation delays can be avoided.
In addition to construction and financing challenges, Mobilinx has been embroiled in legal disputes with subcontractors, further complicating the project’s progress. Lawsuits over unpaid bills and disputes over equipment rental have added to the consortium’s financial woes. The construction issues facing the Hurontario LRT project are part of a broader trend of delays and uncertainties surrounding light rail projects in Ontario, including the Eglinton Crosstown LRT and the Finch West LRT in Toronto. While Metrolinx has withheld payments from consortiums to exert leverage, a resolution for Mobilinx’s financial difficulties remains uncertain.
The future expansion plans for the Hurontario LRT in Mississauga and Brampton, announced by Premier Doug Ford in early 2023, remain unclear. The planned extensions of the line into Brampton and downtown Mississauga were put on hold, with discussions ongoing about potential updates to the project. Metrolinx has designated the expansion as a priority transit project and is working on planning and funding efforts, but no concrete details about the timeline or cost of the expansion have been made public. The completion date and scope of the expansion project remain uncertain, adding to the challenges and uncertainties surrounding the Hurontario LRT project.