Metro car construction back to square one

QUEBEC CITY - The Charest government was forced to back off a controversial plan Wednesday, as it announced it would not appeal a court ruling blocking the province from negotiating a deal to build new cars for Montreal's Metro directly with Quebec-based company Bombardier.

Instead, the Economic Development minister says the Montreal Transit Coporation (MTC) will launch an open bidding process, that will require a "reasonable maximum" of Canadian content.

Raymond Bachand says he was convinced that by negotiating with what the government considered to the sole supplier in Canada, Quebec could get the best deal possible.

But, French giant Alstom challenged the plan in court, claiming it too could provide Canadian content if awarded the 1.2 billion dollar contract.

"I'm not happy," admitted Bachand, but he says an appeal would only delay the delivery of the cars.

"It is important that the Montreal subway cars be renewed as soon as possible," he says.

MTC President Claude Trudel expressed relief at the decision. He says the corporation could not afford to delay construction any further.

Natural Resources Minister Claude Bechard fought hard to see Bombardier awarded the contract in order to help save jobs at the company's La Pocatiere plant, located in his riding of Kamouraska-Temiscouata.

But, Bechard says he can still hold his head high, since he says the plant has already been guaranteed two to three years of work, thanks to a $386-million dollar contract to build trains for the Montreal Transport Agency.

The new metro cars should be ready to hit the rails in 2010.

(Claude Beaulieu contributed to this report)