Off the Kuff Rotating Header Image

Metro reaches settlement with CAF

Fresh from the inbox:

The Metropolitan Transit Authority announced today that it has reached a settlement with CAF USA, Inc. (a subsidiary of the Spanish Firm Construcciones y Auxiliar de Ferrocarriles, S.A.) over two disputed contracts for the construction of light rail cars for its North and Southeast Corridor lines. Under the agreement, the contracts are canceled and CAF will forego any additional payments for unpaid work and lost profits. In addition, CAF will refund $14 million to METRO. The agreement was ratified by the METRO board this morning.

“This is $14 million more for public transportation than we had yesterday,” said METRO Chairman Gilbert Garcia. “More importantly, it’s another step forward from old legacy issues to the safe, reliable and affordable public transit and mobility services that our customers and taxpayers deserve.”

The full press release is here. Given that I was afraid Metro would ultimately owe money to CAF, this is outstanding news. Cross off one more thing from their to-be-cleaned-up list. The rebidding process is set to open in January, so that will be the next step forward.

UPDATE: A copy of the settlement agreement is here.

UPDATE: The Chron story is here. Of interest:

The agreement is the latest of several steps Metro has taken in recent weeks that signal its intent to revive its stalled rail expansion plans in 2011.

In Friday’s meeting, the board also approved boosting rail project spending over the next nine months from $143 million to $345 million. The spending increase will accelerate construction on three lines and restart design work on a fourth.

Very good to hear.

Related Posts:

4 Comments

  1. Christof Spieler says:

    Online press release and a copy of the agreement with CAF: http://ridemetro.org/News/Releases/2010/12172010.aspx

  2. […] University line, improvements to bus service, the next referendum, and more. (We spoke before their settlement with CAF was announced, or I’d have asked about that as well.) Check it […]

  3. […] and one more thing: Remember that settlement with CAF, the Spanish rail car builder that the old Metro violated Buy America with? Metro was to receive […]

  4. […] that this would tack on a year to the production schedule has proven eerily accurate. Metro settled with CAF in December, and had funds appropriated to them in the President’s budget in January. […]