Government Partnership Creates Jobs With Toronto-York Spadina Subway Extension

TORONTO, ONTARIO--(Marketwire - Aug. 7, 2009) - Mr. Bob Dechert, Member of Parliament for Mississauga Erindale, Ontario Transportation Minister Jim Bradley, Toronto Transit Commission chair Adam Giambrone and York Regional chair Bill Fisch joined LOVAT Inc. president Dick Cooper in announcing today that a contract for the purchase of four tunnel boring machines for the Toronto-York Spadina subway extension has been awarded to the Toronto company LOVAT Inc. The total contract value is approximately $58.4 million and will generate manufacturing jobs in the Greater Toronto Area (GTA). The announcement was made during a tour of the LOVAT Inc. facility where the tunnel boring machines will be built. "In 2007, Prime Minister Stephen Harper announced the benefits of building a new Spadina subway line extension, and an important federal investment in the project," said MP Dechert. "Today I'm proud to highlight that here in the GTA, a local company will use its expertise to build an essential piece of machinery for the construction of this extension." "This is another step forward in getting the Spadina subway into service and getting more people out of single-occupant cars and onto public transit," said Minister Bradley. "We are pleased to be a part of this significant mass-transit project, as it not only generates jobs and strengthens infrastructure locally but also highlights Canada's technological capabilities on a global scale," said Mr. Cooper. "To ensure the project schedule is met, the design and manufacturing process for the six-metre diameter tunnel boring machines is already well underway. Each machine will undergo a comprehensive series of tests prior to its delivery to the contractor." The $58-million contract represents about two per cent of the total cost of the extension. These tunnel boring machines will either be reused on other projects, if and when possible, or will be resold, whereby the Toronto Transit Commission will be able to recoup up to 30 per cent of its initial investment. The first two tunnel boring machines are expected to be delivered in fall 2010, and tunnel boring is likely to begin shortly afterwards. The remaining two machines are expected to be delivered by spring 2011. The total cost of the subway extension is estimated at $2.6 billion and is expected to be complete in 2015. The Toronto-York Spadina subway extension project is jointly funded by the Government of Canada, the Province of Ontario, the City of Toronto, and The Regional Municipality of York. Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at apps.tc.gc.ca/e-news and keep up to date on the latest from Transport Canada. This news release may be made available in alternative formats for persons living with visual disabilities.