Feds paid on high end for Trans Mountain pipeline, spending watchdog says

he government bought the pipeline from Kinder Morgan in August

Canada’s parliamentary budget watchdog says the Liberal government paid the “sticker price” when it bought the Trans Mountain pipeline from Kinder Morgan for $4.5 billion.

Parliamentary Budget Officer Yves Giroux estimates the Trans Mountain pipeline and planned expansion project are worth between $3.6 billion and $4.6 billion.

This means government’s purchase price of $4.5 billion was on the high end of the project’s total calculated value.

Giroux also estimates expanding the pipeline’s capacity will cost $9.3 billion if the project is completed by Dec. 31, 2021.

READ MORE: Premier Rachel Notley says Alberta to ease oil production cuts

He warns any construction delays or increases in costs would reduce the value of the project and its resale value, meaning the government could have overpaid for the pipeline.

The government bought the pipeline from Kinder Morgan in August after political opposition to expanding the pipeline between Alberta and the B.C. coast gave the company and its investors cold feet.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Ladysmith author explores community as The Moon Watched It All

Shelley A. Leedahl releasing her latest work, an illustrated tale for all ages

What do you want to see done with Ladysmith’s old train station?

Island Corridor Foundation meets with community to discuss the future of the Railway Station

Easter Fun Day

Kids fill their baskets with treats Saturday at Fuller Lake Park

Mad scramble for Easter treats

Crofton Easter Egg Hunt brings out hordes of kids and massive bunny chases

Mandatory spaying and neutering looms for outdoor Chemainus cats

North Cowichan considers bylaw to control stray and feral cat issues

What’s age got to do with it? B.C. couple with 45-year gap talks happy marriage

An Armstrong couple that has 45-year age gap began turning heads after being featured on show Extreme Love.

Climate action can’t be a partisan issue, say Greens

Green Party of Canada celebrated Earth Day early in Nanaimo

Fisheries and oceans minister spends Earth Day in Nanaimo-Ladysmith

Jonathan Wilkinson in riding to support candidate Michelle Corfield

WATCH: South Vancouver Island shooting an ‘isolated and targeted’ incident, say police

One person in custody, another fled following shooting and crash on West Shore

Woe, Canada: Bruins down Maple Leafs 5-1 in Game 7

No Canadian teams left in Stanley Cup playoffs

Defence accuses officer of ‘incompetence’ in trial for B.C. man accused in daughters’ murder

Double murder trial for the Victoria father accused of killing his two young daughters continues

Should B.C. parents receive money if they make sure their kids are vaccinated?

New survey looks at public opinion around government’s role in forcing immunizations

B.C. men challenge constitutionality of Canada’s secret no-fly list

Parvkar Singh Dulai says he received a “denial of boarding” notification under the no-fly program last May 17

Murder on B.C. property didn’t need to be disclosed before sale, court rules

Buyer had tried to break contract after learning a man with ties to crime had been murdered there

Most Read