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Houston METRO receives $14 million refund from CAF USA


The Metropolitan Transit Authority of Harris County, Texas, (METRO) has received a $14 million refund as part of a settlement with CAF USA Inc. regarding the building of light-rail cars for the North and Southeast lines.

In a settlement announced a few months ago, the two sides agreed to cancel the contracts and CAF agreed to refund $14 million to METRO and forgo additional payments for unpaid work. CAF is a subsidiary of the Spanish firm Construcciones y Auxiliar de Ferrocarriles S.A.

In September 2010, the Federal Transit Administration found that the contracts negotiated by CAF and former METRO management violated “Buy America” requirements in federal procurement law.

The $14 million will go toward the agency's new rail cars, said METRO Chairman Gilbert Garcia in a prepared statement.

Contact Progressive Railroading editorial staff.

More News from 2/18/2011