(Adds reaction from Canadian PM, context, analyst comment)
By Allison Lampert
MONTREAL, May 12 (Reuters) - Ontario transit agency Metrolinx said on Friday it is entering into an agreement to buy 61 light rail vehicles from French train maker Alstom ALSO.PA , spurning its Canadian rival Bombardier Inc BBDb.TO .
Metrolinx, which is in a dispute with Bombardier over delivery delays on an existing contract, said in a statement that the steps taken with Alstom give the agency a "safety net if it turns out Bombardier is unable" to fulfill its contract.
The agency, which manages public transportation in the metropolitan Toronto area, did not disclose a value for the order from Alstom, which would build the vehicles for two different projects, one of which is expected to be completed with cars from Bombardier.
If Bombardier meets its delivery obligations by a revised schedule, Metrolinx said it would use part of the Alstom cars for a different project.
Metrolinx, which tried to cancel a C$770 million ($561.35 million) light rail contract with Bombardier because of delays and execution concerns, was ordered by an Ontario court judge in April to continue dispute resolution talks with the Quebec-based maker of trains and planes. are going through a dispute resolution process with Bombardier, but that could take eight to 12 months, and we can't wait that long to determine whether Bombardier will be able to deliver," the agency said.
Bombardier said in a statement that it is "ready, able, and willing to deliver these vehicles to the people of Toronto on time."
When asked for comment on the order, Canadian Prime Minister Justin Trudeau told reporters just north of Toronto on Friday that his government tends "to respect the opportunity and the responsibility of municipalities and provinces to make decisions around procurement."
($1 = 1.3717 Canadian dollars)