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Ottawa city staff have recommended that a contract to build and maintain the Ottawa Light Rail Transit project be awarded to the Rideau Transit Group.

The contract award marks a milestone for the light-rail project, government officials said in a prepared statement. The contract will require Rideau to design, build, finance and maintain the project, which will include building and financing of a Highway 417 widening project.

Rideau Transit Group's proposal outlined a construction schedule that calls for substantially completing the project by 2017's end and launching service by 2018. The group agreed to a fixed price contract of $2.1 billion (in Canadian dollars), government officials said.

The Canadian government will provide $600 million for the project, known as the Confederation Line, through the Building Canada Fund. The city of Ottawa will allocate up to $479 million and Ontario government will contribute $600 million. The remaining project funds will come from development charge revenue and transit reserves, city officials said.

The Ottawa city staff recommendation will be reviewed by the Council's Committee of the Whole on Dec. 12 and then by the Council on Dec. 19.