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The electricity burden is burdened by RTC’s debt, which will double in 2024

The electricity burden is burdened by RTC’s debt, which will double in 2024

Future major investments, especially in electricity, are costly to the RTC and burden its debt, which will double in 2024.

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This figure was not included in documents provided to the media on Thursday, when the RTC’s budget was revealed. It was after questions about this topic that Newspaper I knew the debt would go up.

“The expected net debt of RTC’s financial position as of December 31, 2024 is $170 million, which represents an increase of 113%,” company spokeswoman Raphaëlle Savard said.

In fact, debt projections for 2023 are as high as $80 million. For 2024, “this represents an increase of $90 million in one year due to the DRI [programme décennal d’immobilisation]“This can be explained, among other things, by electricity and the purchase of buses,” explained MI Savard.

On Thursday, RTC Director General Nicolas Girard insisted on the “pressure” that is being put on the budget, due in particular to the electrification of the fleet, imposed by the Quebec government, but without compensation considered adequate by the side. For the state.

Investments over 10 years

Of the $2.9 billion in investments planned over 10 years, $1.8 billion will be allocated to electricity. Mr. Girard noted that RTC does not currently have the means to pay these expenses in full and that it will therefore have to add $635 million to its debt, including $300 million for electricity.

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This is the beginning of this phenomenon that we have begun to see appear in the organization’s finances. “These are the investments we have started. We have not yet reached the peak, but this is what creates an increase in debt: financing investment spending that is embodied in debt,” RTC explained.

The organization explains that in 2024 it will spend on electricity, but it will also get a final big batch from hybrid buses. Starting in 2025, the carrier will only have to buy electric cars.

Investments also have an impact on net debt service, that is, the amounts RTC pays each year to repay its debt. In 2024, it will increase by $2.9 million, or 22.7%. The costs of this service are also expected to rise significantly in the coming years; Expectations indicate that it will increase from $15 to $65 million between 2024 and 2033.

the prices

“There is a lack of investment [gouvernemental] On public transport,” the city’s mayor, Bruno Marchand, confirmed on Friday. This will also reflect on the pockets of users, while an increase in prices will occur next July. This is a situation that disappoints the mayor, who was hoping to reduce these prices, but he has to face Current economic situation.

In numbers

Revenue of $280.6 million at RTC in 2024 breaks down to:

  • Contribution from the group: $149.1 million
  • Users and other income: $76.8 million
  • Government of Quebec – One-Time Assistance: $29.8 million
  • Government of Quebec – Employment Support: $13.3 million
  • Government of Quebec – Emergency Aid: $0
  • Contribution from motorists: $11.6 million
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Source: RTC 2024 Budget

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