Ontario’s transit agency has been battling a series of issues with the consortium tapped to build the Hazel McCallion LRT, internal documents reveal, as the project falls four years behind its initial completion date.
Briefings obtained by Global News show that throughout 2025, Metrolinx and the Ford government were worried the light rail build was “experiencing a number of issues.”
The problems ranged from liquidity concerns, design problems and even trouble obtaining the necessary work permits.
The issues were with the contract to build the 18-kilometre, 19-stop light rail route between Port Credit and Steeles Avenue.
Work on the LRT began in 2020 and was originally supposed to be completed in 2024. The documents, however, confirm completion of the route now isn’t expected until 2028, after the consortium Mobilinx hit a series of hurdles.
“The project is experiencing a number of issues related to performance with its Project Co, Mobilinx, that have led to significant delays to the project schedule,” one government briefing, obtained using freedom of information laws, explains.
The briefing goes on to list, “issues related to quality of work performed, lost productivity due to liquidity challenges, lack of progress on design, and resulting inability to obtain necessary work permits.”
According to one briefing from March 2025, officials with the Ministry of Transportation and Metrolinx worried that the problems with the Hazel McCallion LRT might force them to act.
“The project will require a significant project management effort to get back on track or Metrolinx will need to seek an alternative commercial and delivery strategy,” the presentation explained.
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A spokesperson for Metrolinx said work on the project was pushing ahead.
“Construction continues to advance, with track work complete at 46 of 55 intersections,” they wrote in a statement sent to Global News.
Ontario NDP MPP Tom Rakocevic said the Hazel McCallion LRT, which will run along Hurontario Street, has been mismanaged.
“We see that there are issues of management, there’s design issues, they’re not even able to get permits,” he said.
“This is a project that was supposed to have been completed two years ago and you’re still working on design and permits? This is just, this is the typical management we see from the Ford government and Metrolinx under their watch.”
The internal warnings came roughly a year before Metrolinx agreed to completely restructure its agreement with Mobilinx, splitting the unfinished work into two new contracts.
In a routine update published in July, Metrolinx disclosed that the $4.6-billion contract signed with the consortium, Mobilinx, in 2019 had been rewritten and split into two parts.
The project was previously governed by one massive P3 contract for Mobilinx to design, build, operate and maintain the line.
Theoretically, P3 contracts mean the private sector signs up to build infrastructure at a certain price, but for Ontario transit projects, they have been marked by stoppages and messy legal disputes over who is responsible for delays.
The two new agreements — which are both with the same consortium — will be an alliance agreement to build the route and the existing P3 terms to maintain and operate the line, the government said.
Alliance deals allow more options for governments to release payments to private-sector companies and are seen to offer more flexibility. Both Metrolinx and the Ford government have indicated they see alliance contracts as better than P3 in most circumstances.
Metrolinx would not directly confirm they were forced to restructure the contract because of the series of issues faced by the consortium building the delayed line.
“The Alliance contract is with Mobilinx, the project partner selected through a competitive P3 procurement in 2019. P3s are no longer used for new projects,” the agency wrote in its statement.
“The Alliance model strengthens accountability, shares risk and supports faster decision-making and project delivery.”
Rakocevic said there should be more transparency from Metrolinx on what had led to the recontracting and the issues the Hazel McCallion LRT has struggled with since construction began.
“We, the people of Ontario, pay for these projects and yet all the decisions are made behind closed doors all the time,” he said.
“The result of these decisions have always been projects that are either late, overpriced or never starting to begin with.”
© 2026 Global News, a division of Corus Entertainment Inc.
