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Busker Alain Lebeau plays the Lionel Groulx metro (subway) station in Montreal.IAN BARRETT for The Globe and Mail

Quebec Premier Jean Charest confirmed Tuesday that the provincial government has awarded a $1.3-billion contract to a Bombardier-Alstom consortium to supply new cars to the Montreal subway system.

The decision allows the project to proceed immediately by avoiding a tender process that would have delayed delivery of the new Metro cars.

Mr. Charest made the announcement at Bombardier Transportation's facility in La Pocatiere, where the new subway cars will be built.

The first cars will be delivered in two years.

The contract covers the construction of nearly 500 cars and will result in the recall of 400 workers at the plant and allow the alliance between Bombardier and France-based Alstom to hire 775 new people over eight years.

Claudette Carbonneau, president of the Confederation of National Trade Union, welcomed "the initiative that could finally put an end to a saga that has lasted 52 months."

She said the contract award will allay the concerns of employees of the plant.

Last week, Quebec Transport Minister Sam Hamad announced the province was delaying a new international tender call because of the urgency in replacing the aging subway cars, some of which were built in 1963.

To comply with international trade rules, Quebec will have to pass special legislation, expected to be tabled in the provincial legislature later Wednesday.

During a news conference, Charest said the special legislation "puts an end to file" and allows Quebec to escape possible litigation.

The Spanish firm CAF, which wanted to bid on plans for a larger Metro contract estimated to be worth about $3-billion, was unhappy with the government's decision.

The company argued in a statement Monday that the emergency being invoked to bypass an international competitive bidding process was not justified.

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