WATERLOO REGION - A new deal worked out between Metrolinx and Bombardier for light rail vehicles should benefit Waterloo Region.

"Overall, we think it's going to be a positive impact for us," said Thomas Schmidt, the region's commissioner of transportation and environmental services.

The region piggybacked on the Toronto regional transit agency's contract for its 14 Ion trains to get a better price.

On Thursday, Metrolinx said the new agreement has improved terms, including "significant financial penalties" if vehicles aren't delivered on time or if the quality is not acceptable.

Schmidt said the new deal also includes firmer dates, "which hopefully should motivate Bombardier to get the vehicles done."

Metrolinx cut its original order by more than half, from 182 vehicles to 76. Schmidt doesn't expect the reduction in Metrolinx's order will get trains to Waterloo Region any faster.

"We're the first vehicles in the run. I don't think it's going to impact our schedule in that way."

But the new deal does free up everyone involved to focus on getting vehicles off the assembly line now that all the behind-the-scenes legal discussions are over, he said. The region was not involved in the negotiations between Metrolinx and Bombardier.

"We were aware they were dealing with it," Schmidt said. "Our agreement with Bombardier doesn't change."

The transit agency and Bombardier have been at odds for months over the company's ability to fulfil train orders.

In May, Metrolinx reached an agreement to buy 61 light rail vehicles from French manufacturer Alstom in case Montreal-based Bombardier fails to deliver its vehicles.

Alstom announced Thursday it will establish a manufacturing plant in Brampton to build the Metrolinx light rail cars, creating 120 jobs. The company already employs more than 300 Canadians at facilities in Ottawa and near Montreal.

Vehicle delivery delays have pushed Waterloo Region's light rail construction cost up substantially.

The region announced earlier this month that the total added costs are expected to be about $50 million - almost half of that related to vehicle delays.

The province kicked in another $25 million, leaving the region with $25 million to cover. A regional official said at the time it plans to try to recover all the additional costs related to late delivery from Bombardier.

The region's agreement with Bombardier allows for a maximum of about $4 million for damages for late delivery, but the region plans to go after all the added costs of $24.6 million.

The region's light rail service from Waterloo to Kitchener was initially expected to launch in July 2017, but that has been pushed to the end of April 2018. The added costs for GrandLinq, the consortium hired to build and operate the light rail system, is mostly related to keeping people on the project longer than anticipated.

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The region has received three vehicles and the fourth is being loaded for its journey here.

"We're actually expecting it next week," Schmidt said.