CBJ — A mere hours after announcing that the Hamilton LRT project would cost billions more than the previous Ontario Liberal government had forecast the current Conservative government has pulled the plug on $1 billion in government financing for the mass transit project.

According to the Doug Ford government the actual cost for the project would be about $5.5 billion, a whopping $4.5 billion more than previous projections.

Minister of Transportation Caroline Mulroney (pictured) was to have made an announcement of cancellation in Hamilton on Monday afternoon, but it was abruptly cancelled due to a large group of angry local politicians, business people and local citizens that had gathered in the Sheraton Hotel.

The Mayor of Hamilton Fred Eisenberger was the first person to confirm the funds had been pulled following a face-to-face meeting with Mulroney.

The previous provincial Liberal government pledged the $1 billion in 2015. The current Doug Ford government agreed to honour that pledge, but has since done a 180 on word the actual price will be significantly higher than what the Liberals had said it would be– to the tune of $4.5 billion. The government says it is still committed to providing $1 billion for Hamilton transit, but that will be the cap. However, municipal politicians question whether they will see it.

@CanBizJournal