Alstom taking Quebec to court over metro-car contract

A legal dispute could delay the construction of Montreal's new metro cars.

The $1.2-billion deal for the replacement of 336 metro cars between 2010 and 2012 was awarded to Bombardier, but without a public tender.

French transportation giant Alstom, the companyshut out of the process, is going to court to fight for a chance to land the deal.

Alstom had a hand in building Montreal's metro system almost 40 years ago. However,when it came time earlier this spring to award a contract to build new metro cars, Alstom says it wasn't given a chance.

"There has to be a public tender and there is a procedure to be followed," saidAlstom spokesman Pierre Renault.

Alstom argues laws are being broken, and claims the Montreal Transit Corporation is required to tender all contracts above $100,000.

Renault insists it's the law for all Quebec public transportation agencies.

"What we have done is say to the court that in virtue of the legislation, the law has not been followed," Renault said.

Province stands by decision

Meanwhile,the province, which gave permission to the transit corporation to proceed without tender, is standing by its decision to employ Bombardier.

"We are very confident that our decision is legitimate as far as international business is concerned,"Premier Jean Charest said in French on Wednesday, noting no laws or trade agreements are being broken.

He insists Bombardier will build Montreal's new metro cars.

The design, manufacture and assembly of the metro-car fleet would take place at Bombardier's facilities in St. Bruno and La Pocatière, Que. Hundreds of workers at the plants could expect secure work for years to come.

Alstomsays all parties will be in court next month, where that plan could change.