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UPDATE 3-Bombardier snubbed in Caisse Montreal project as costs overrun

From Reuters - February 8, 2018

* Bombardier loses out in tender for railcar contract

* Contract, worth over C$1 billion, awarded to Alstom

* Caisse says project costs risen to C$6.3 billion

* First trains put back to summer 2021 from 2020 (Recasts; adds details of Bombardier contract loss)

By Matt Scuffham

TORONTO, Feb 8 (Reuters) - Bombardier on Thursday missed out on a contract to provide rail cars for one of the worlds biggest light rail systems in Montreal, a project led and financed by its biggest shareholder.

Frances Alstom and its partner SNC-Lavalin were awarded the contract, worth more than C$1 billion ($793 million), by Quebecs public pension fund following a tender process overseen by an independent committee. The Caisse holds a 30 percent stake in Bombardiers rail business.

The decision is a blow to the Quebec-based plane and trainmaker, which is in the middle of a five-year turnaround plan to cut costs and boost margins after years of heavy investments in its CSeries jet pushed it to the brink of bankruptcy in 2015.

We understand and share the disappointment our employees have about this announcement, said Benoit Brossoit, Bombardier Transportations president for the Americas region.

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