The $616-million extension of Highway 427 near Toronto sits unused and off-limits to drivers amid a legal dispute between the Doug Ford government and the private consortium hired to build it, CBC News has learned.
To the naked eye, the extension appears complete: the lanes are painted, road signs are up. Bridges and off-ramps have been built. Traffic lights are installed.
But the provincial government has told CBC News the highway, built as part of a public-private partnership, can't open due to safety concerns.
The consortium, LINK427, disputes that. In a lawsuit filed this week, it accuses the government of stalling the opening of the extension so it can delay paying the consortium more than $144 million it is owed.
According to the lawsuit, which has not been tested in court, the consortium and the province are embroiled in other battles involving unspecified amounts of money for extra work done on the project but not paid for.
The process to resolve those disputes can't begin until after the highway extension is opened and the province makes the $144-million final contract payment to LINK427.
Caught in the middle are Ontario drivers who can't use the highway extension, despite an independent, third-party road safety audit (RSA) that deemed it safe for public use in February, according to the lawsuit.
Case about 'government abusing its powers'
The money can't be released until the highway extension also gets what's known as a Substantial Completion Certificate from another independent, third-party consultant.
"This case is about the government abusing its powers to force [LINK427] to undertake costly last-minute upgrades to a major highway without compensation," according to the lawsuit.
The unpaid money is putting contractors in financial peril and "preventing the people of Ontario from using a ready-for-use highway," LINK427 alleges.
The consortium is seeking a court order forcing the province to pay up and open the highway extension.
The lawsuit says the province is also demanding $10,000 a day in penalties from the consortium for every day the highway has remained closed since its targeted completion date of Sept 30, 2020. This comes despite alleged construction delays caused, in part, by the province's pandemic restrictions in the spring of 2020.
The province has yet to file a statement of defence.
Why you can't drive on this new, $616M Toronto-area highway (yahoo.com)
To the naked eye, the extension appears complete: the lanes are painted, road signs are up. Bridges and off-ramps have been built. Traffic lights are installed.
But the provincial government has told CBC News the highway, built as part of a public-private partnership, can't open due to safety concerns.
The consortium, LINK427, disputes that. In a lawsuit filed this week, it accuses the government of stalling the opening of the extension so it can delay paying the consortium more than $144 million it is owed.
According to the lawsuit, which has not been tested in court, the consortium and the province are embroiled in other battles involving unspecified amounts of money for extra work done on the project but not paid for.
The process to resolve those disputes can't begin until after the highway extension is opened and the province makes the $144-million final contract payment to LINK427.
Caught in the middle are Ontario drivers who can't use the highway extension, despite an independent, third-party road safety audit (RSA) that deemed it safe for public use in February, according to the lawsuit.
Case about 'government abusing its powers'
The money can't be released until the highway extension also gets what's known as a Substantial Completion Certificate from another independent, third-party consultant.
"This case is about the government abusing its powers to force [LINK427] to undertake costly last-minute upgrades to a major highway without compensation," according to the lawsuit.
The unpaid money is putting contractors in financial peril and "preventing the people of Ontario from using a ready-for-use highway," LINK427 alleges.
The consortium is seeking a court order forcing the province to pay up and open the highway extension.
The lawsuit says the province is also demanding $10,000 a day in penalties from the consortium for every day the highway has remained closed since its targeted completion date of Sept 30, 2020. This comes despite alleged construction delays caused, in part, by the province's pandemic restrictions in the spring of 2020.
The province has yet to file a statement of defence.
Why you can't drive on this new, $616M Toronto-area highway (yahoo.com)
