The City of Ottawa in Canada has exercised an option under the current contract with Rideau Transit Group Partnership (RTG) to utilise equipment continuity, knowledge and cost efficiencies.

Both parties have also signed a fixed-price variation agreement worth an estimated C$349m ($266.56m) for the rolling stock and on-board equipment for Stage II of Ottowa's Confederation Line.

The contract forms a part of the memorandum of understanding (MoU) that was previously signed by RTG and the City of Ottawa in March.

RTG is a consortium consisting of SNC-Lavalin, ACS Infrastructure Canada and EllisDon, and is currently working on the Stage I of the Confederation Line.

The contract will see the consortium deliver 38 additional light rail vehicles, which are to be assembled at Belfast Yard Maintenance, Administration and Storage Facility (MSF).

"The contract will see the consortium deliver 38 additional light rail vehicles, which are to be assembled at Belfast Yard Maintenance, Administration and Storage Facility (MSF)."

RTG will also help Ottawa city with the development's procurement process.

The remaining scope of the work is yet to be finalised, but is understood to include the expansion of MSF, maintenance of the additional vehicles and facilities, and the delivery of specialised communications equipment, as well as interface and design management for maintainability.

SNC-Lavalin Infrastructure president Ian Edwards said: “Our extensive experience and knowledge on Light Rail Transit projects as well as our success on Confederation Line Stage 1, is a testament to our ability to bring smart, strategic procurement and technical solutions that create economies of scale for our clients.”

The Confederation Line is expected to provide a rapid alternative transit solution to the passengers of Ottawa and decongest the existing routes upon completion.

Work under the project's Stage II started last month and is anticipated to be completed by the end of next year.