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Last week, the Toronto City Council approved deferring $417 million from the Toronto Transit Commission's (TTC) capital budget so the agency can complete the purchase of 204 light-rail vehicles from Bombardier Transportation Canada Inc.

As a result, TTC will defer $417 million worth of capital projects between 2012 and 2018. The city of Toronto had committed $834 million toward the $1.2 billion LRV purchase and was seeking $417 million from the federal government to cover the remainder of the cost. However, the federal funding request recently was denied, according to Toronto officials.

The LRVs will replace the TTC's aging streetcar fleet, as well as help address crowding and accommodate ridership growth. Bombardier is expected to deliver a prototype vehicle in 2011. Revenue cars will begin arriving in late 2011 or early 2012, with all cars to be delivered by 2018.

Bombardier will manufacture the vehicles at its Thunder Bay, Ontario, facility.