Quebec and Ottawa have reached a $600-million deal to fund a link connecting the Montreal-Trudeau International Airport to the city’s new light rail system. The project was in jeopardy after the airport authority, which was supposed to finance the station, lost hundreds of millions of dollars in revenues after the COVID-19 pandemic crippled the airline industry.

Under the agreement, the airport authority will receive a $300-million loan from the Canada Infrastructure Bank, a $100-million investment from Transport Canada and a $100-million loan from the Quebec government.

Montreal’s airport authority would be responsible for paying up to $100 million of the costs and paying back the loans from the infrastructure bank and Quebec City.

Earlier this year, the Trudeau airport said it needed help to make the project work. It has already spent $45 million on the preparatory phase of the project, which will be included in its contribution.

The first phase of the light rail system, called Reseau express metropolitain (REM), includes 26 stations and is estimated to cost $6.5 billion The airport station will offer travellers to the city a direct link to downtown.