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Council Reaches Settlement Agreement with Rideau Transit Group

Updated: Jan 27, 2023

Jan 27, 2023, Ottawa – The City of Ottawa and Rideau Transit Group (RTG) are pleased to have reached a settlement that resolves several issues between them and resets their relationship to focus on the delivery of safe and reliable transit service to the people of Ottawa. Through this agreement, the City and RTG will continue to move forward with the goal of improved collaboration and partnership as recommended in the OLRT Public Inquiry Commission Report.


The settlement agreement:

  • Resolves the Notice of Default that arose following the August 8 and September 19, 2021 derailments through RTG’s acknowledgement of the Default and the City’s confirmation of the immediate cure based on RTG’s rigorous plan to address the issues that led to the derailments and come to a sustainable resolution of the axle bearing assembly issue. The City acknowledges the work RTG has done and will continue to do to ensure the people of Ottawa receive safe and reliable service on O-Train Line 1 and will continue to monitor RTG’s progress.

  • RTG is committed to achieving a sustainable resolution of these issues for all O-Train Line 1 light rail vehicles before the opening of the Stage 2 East extension. In addition, RTG has and will continue to implement various interim mitigation measures to ensure the reliability of O-Train Line 1.

  • The City and RTG have also settled several disputes concerning RTG’s performance during the maintenance phase and the City’s administration of the contract during the maintenance phase.


The City and RTG have been working collaboratively and cooperatively together for many months on the development of a rigorous Implementation Plan and resolution of both the Default and maintenance disputes. This collaborative work began prior to the release of the Commission Report. The settlement demonstrates both parties’ acknowledgement of the importance of cooperation, which the Commission Report urged, and demonstrates both parties’ ongoing commitment to the public interest in delivering safe and reliable train service on O-Train Line 1.


This agreement builds on the work already done to improve the system and reflects a number of recommendations from the Commission Report.


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Ottawa – On January 25, City Council approved a proposed settlement agreement with Rideau Transit Group which would resolve a number of issues between the City and RTG. The terms presented to Council during the in camera briefing are confidential, as they relate to litigation and are covered by solicitor-client and settlement privilege. More information will be provided when the agreement becomes effective


Council proclaimed January 27 as International Holocaust Remembrance Day to create greater public understanding and awareness of this horrific period in history from 1933 to 1945.

Council deferred the funding model and business case today for the Zero-Emission Bus program to the Transit Commission for further discussion.


Council approved applications to alter three heritage properties, including:

Council also extended recruitment period for the public member for the Ottawa Police Service Board to the end of February 2023.






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