Ottawa's cancelled north-south electric light rail project might be built after all.

Coun. Diane Deans tabled a motion Wednesday asking council to consider reinstating its light rail contract with the companies that were to design, build and maintain the Barrhaven-to-downtown line.

The motion was brought forward after the city received two letters from the contractors Wednesday morning, demanding the city choose one of two options.

In the first letter, the companies offered to accept $175.3 million "in full and final settlement of all claims against the city arising from the wrongful termination of the project agreement."

The amount includes direct costs of $25.3 million and $150 million in lost opportunities, profits and damages.

The second letter said that the companies are alternatively willing to go forward with the original $778-million contract if the city agrees to pay an extra $70 million and makes its decision by the end of February.

The letters were addressed to city manager Kent Kirkpatrick and the director of strategic projects, Réjean Chartrand, and were signed by Robert Weber and Brad Nelson, the directors of the Ottawa LRT Corporation, the group made up of the contracted companies, Siemens-PCL/Dufferin.

In order for council to reconsider its decision, council regulations require that "new information" come to light. If Mayor Larry O'Brien decides that the letters constitute new information, then council will be able to vote on whether to reinstate the contract.

The proposed electric north-south light rail line was to run from Barrhaven through downtown to the University of Ottawa.

In July, the previous city council approved a $778-million light rail contract with Siemens-PCL/Dufferin to design, build and maintain the line.

On Nov. 13, a new city council was elected, and in December, they voted to cancel the light rail contract.