Fragiskatos says London’s bus rapid transit system won’t get a financial bail out

Passengers board a London Transit bus on Jan. 25, 2024. (Daryl Newcombe/CTV News London)

Just days after city council discussed lobbying for funds to offset an estimated $174 million shortfall to build the bus rapid transit (BRT) system, London North Centre MP Peter Fragiskatos said no more federal dollars will be made available.

“We emphasized with the city through the BRT process that any cost overruns would be their responsibility, they agreed to that, and that's why the matter from my perspective is settled,” Fragiskatos told CTV News London.

On Tuesday, council begrudgingly approved (9-7) a staff recommendation to delay intersection improvements at Oxford Street and Wharncliffe Road in order to redirect $6.5 million towards the BRT project.

According to documents in the 2024-2027 Municipal Budget, construction of the BRT routes will be an estimated $174 million over budget.

During the council meeting, Deputy Mayor Shawn Lewis said post-pandemic inflation and soaring property values along the route were unforeseeable when the initial cost-sharing agreement was signed with the provincial and federal governments.

Council was then told that lobbying for additional funding is already underway locally, as well as through the Big City Mayors’ Caucus, the Association of Municipalities of Ontario (AMO), and the Federation of Canadian Municipalities (FCM).

However, Fragiskatos pointed to the extent of federal support London has already received since 2015.

“We’ve allocated in fact, close to $500 million to the City of London for infrastructure projects,” he said. “That includes transit, [and] that includes a range of other projects as well.”

When asked about the possibility of funding for the deferred intersection improvements at Oxford Street and Wharncliffe Road, Fragiskatos said, “We also know that municipalities do have infrastructure challenges, and so that is why my door is open, I'm happy to engage, but on this matter of [BRT] transit, it is a decided matter and the city knows that."