The City of Montreal has approved a $108 M bailout for their bike-sharing program, Bixi, last Tuesday.

City council voted 35-25 Tuesday afternoon in favour of the package, initially proposed by mayor Gérald Tremblay.

The package includes $37-million to cover Bixi’s deficit, and another $71-million in loan guarantees to export and develop the system abroad.

The head of the the non-profit rental-service – Roger Plamondon – has insisted the company is not under threat, despite having liquidity problems.

The Bixi system was set up in Montreal, 2009. Personally, I think it’s great. There are a high number of easily accessible stations, the bikes are easy to ride (although forever stuck in that slow gear), and the price is reasonable ($5 for an unlimited day pass). I use it whenever my bike is broken or I need to go somewhere that I don’t want to ride back from.

The lack of transparency on Bixi’s financial health is disappointing. Jacques Bergeron’s office was supposed to audit the bike system, and submit a summary of that review in his annual report. However, his 2010 report, tabled Monday, does not include any Bixi audit and Bergeron says it won’t be ready until at least June.