(Reuters) - Bombardier Inc (BBDb.TO), which was excluded from bidding on a contract by Ontario-based transportation agency Metrolinx, said on Tuesday it had filed an application for judicial review.
Bombardier said in a statement it was taking Metrolinx to court after the agency designated the Canadian plane and train maker ineligible to bid on the contract valued at over C$2 billion ($1.57 billion). Bombardier said no reason was given.
Metrolinx responded in an emailed statement that Bombardier could not bid on the contract to manage its rail operations because the company already does work for the agency, including being a train supplier.
“One of the main duties of the successful bidder will be to carry out an assessment of our current operations and service providers,” Metrolinx spokeswoman Anne Marie Aikins said in the statement.
“A current operator cannot oversee this function objectively. That’s why Bombardier will not be eligible to fulfill that role.”
In April, Bombardier had won a case to stop Metrolinx from terminating a C$770 million ($603.78 million) light rail contract due to delivery delays.
Metrolinx had signed an operations and maintenance contract with Bombardier until 2023, which the agency said would not change.
($1 = 1.2753 Canadian dollars)
Reporting by Anirban Paul in Bengaluru; Editing by Richard Chang