13. PIC - Lac-Mégantic Rail Bypass

LOCATION: Lac-Mégantic and the municipalities of Frontenac and Nantes

ISSUE/SOURCE: Lac-Mégantic Bypass Update

DATE: September 2024

SUGGESTED RESPONSES

The Government of Canada continues to work closely with its partners to complete the Lac-Mégantic rail bypass project as quickly as possible, while minimizing the project's impact on the affected communities and ensuring the best possible integration.
The project has $213.1 million ($188 million in grants and contributions) funding for the 2024/2025 fiscal year, which can be carried forward to future years depending on the needs of the project.
Construction of the bypass will begin once all regulatory approvals have been obtained, including from the Canadian Transportation Agency.

On December 20, 2022, the Prime Minister of Canada and the Premier of Quebec met and agreed that the two governments will increase their respective funding for the construction of the Lac-Mégantic rail bypass, according to the same ratios as those initially announced in 2018 (60% Canada and 40% Quebec).
The Government of Canada took physical possession of the land required to carry out the project on August 1, 2023, through the expropriation process. A fair and equitable offer of compensation has been made to all persons entitled to compensation.
On May 8, 2024, the Federal Court dismissed the application for judicial review of the expropriation filed by certain owners.

On May 11, 2018, the Prime Minister of Canada and the Premier of Quebec announced the completion of the Lac-Mégantic rail bypass project, the cost of which was estimated at $133 million. It was to be jointly funded by the federal government (60%) and the province (40%).
The project consists of building a new 12.5-kilometre rail corridor bypassing downtown Lac-Mégantic. The main objective of the project is to help the community of Lac-Mégantic move forward and mitigate the traumatic effects associated with the accident.
Transport Canada is working with Canadian Pacific Kansas City to obtain the required regulatory approval from the Canadian Transportation Agency to carry out the project. Currently, Transport Canada and Canadian Pacific Kansas City are working to draft and update the required documents to finalize the application to the Canadian Transportation Agency.

On October 6, 2023, the Government of Canada announced progress on the Lac-Mégantic rail bypass project, including the signing of two key agreements to launch the first calls for tenders.
A contribution agreement has been signed between the federal government and the City of Lac-Mégantic to allow for the relocation and reconstruction of its municipal infrastructure.
The Government of Canada has also signed a contribution agreement with Central Maine and Quebec Railway Inc., a subsidiary of Canadian Pacific Kansas City, for the construction of the bypass. The agreement sets out the terms and fundamental principles by which the rail operator will carry out the project. It will also make it possible to launch the call for tenders process that will make it possible to mandate a firm to carry out the work.

As part of the 2022 federal budget, $237.2 million was allocated to Transport Canada over five years for the construction of the Lac-Mégantic rail bypass. The Government of Canada reiterated that it continues to take important steps to move the project forward.
The Lac-Mégantic rail bypass project has received $35.1 million in funding for the 2023/2024 fiscal year.