OTTAWA — The Parliamentary Budget Officer says the federal government now stands to lose money from its investment in the Trans Mountain pipeline.
The latest analysis shows the net present value of the pipeline is negative $600 million, leaving it worth about $1.2 billion less than the PBO’s estimate in December 2020.
Estimated construction costs of the pipeline have skyrocketed from $12.6 billion to $21.4 billion since the last report and the completion date has been pushed back a year to the end of 2023.
In 2019 a PBO report had pegged the cost of the pipeline expansion at $3.6 billion and $4.6 billion.
The PBO says that if the government were to stop construction this month and cancel the project indefinitely then the government would need to write off over $14 billion in assets.
The federal government bought the pipeline, and the unfinished work to increase its capacity by twinning it, in August 2018 for $4.4 billion.
This report by The Canadian Press was first published June 22, 2022.
The Canadian Press
- 0025 Kendalls
- 0026 Buffalo Potash Quinton Salt
- 0024 Southern Bolt Katrina Southern Folk Rock Intro
- 0023 LC Trucking tractor picker hiring mix
- 0022 Grimes winter hiring
- 0021 OSY Rentals S8 Promo
- 0019 Jerry Mainil Ltd hiring dugout
- 0018 IWS Hiring Royal Summer
- 0016 Estevan Meter Services
- 0014 Buffalo Potash What if PO
- 0015 Latus Viro PO Ad 01
- 0013 Panther Drilling PO ad 03 top drive rigs
- 0006 JK Junior
- 0004 Royal Helium PO Ad 02