Metro cancels disputed contract, wins $50 million from FTA

Rail vehicles to be rebid

Jay Blazek Crossley, Dec 20, 10.

The Metropolitan Transit Authority of Harris County cancelled the disputed contract with Spanish corporation CAF USA to build new light rail cars in the USA that were designed in Spain, clearing the way for Metro to rebid the project, according to the Houston Chronicle.

As part of the deal, $14 million of $41 million that Metro had already paid the company will be refunded to Metro. Also at Friday’s Metro Board Meeting, the budget for light rail construction was increased from $143 million to $345 million in anticipation of increasing allotments from the Federal Transit Administration. In a possibly related move, the FTA informed Congress that it intends to grant another $50 million to Metro to continue work on building the North and Southeast light rail lines, according to ProgressiveRailroading.com, which quotes Metro Chairman Gilbert Garcia: “The new METRO understands that the FTA is our partner, and so we adopted a more proactive, cooperative approach in working with them,” Garcia said. “The release of $50 million is a clear sign we’re moving in the right direction.”

Garcia also appears in a recent mp3 interview on Off the Kuff along with Metro Board Member Christof Spieler.

In a related note, the City of Sugar Land is exploring the potential for commuter rail or light to connect Sugar Land to other centers in the Houston region as part of a comprehensive transportation plan, according to KHOU Channel 11 news.

Off the Kuff Interview (direct mp3)

KHOU Channel 11 Story: