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

Police investigating after crash on Hillside Avenue

Traffic obstucted while involved vehicles removed from scene

VicPD seize knife, bear spray from youth

Youth issued large fine for weapons

Sentencing delayed for man who attacked VicPD dog

Uno later recovered from his injury and returned to work

Police ask for public’s help in locating Johnny Sam

Sam was last seen on April 17 in Esquimalt

Eco warriors to shut down Douglas Street on Earth Day

Environmentalists to call on banks to divert investments into green infrastructure

Victoria church bells toll in solidarity with Notre Dame Cathedral after devastating fire

Churches around the globe ring bells to honour iconic Paris cathedral

POLL: How often does your family use BC Ferries?

Navigating the lineups for BC Ferries is a way of life for… Continue reading

Crime Stoppers most wanted for Greater Victoria for the week of April 16

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Lawsuit eyed over union-only raise for B.C. community care workers

‘Low-wage redress’ leaves 17,000 employees out, employers say

Landlord of alleged Okanagan shooter recounts deadly day

Tony Friesen was working in one of the units of his Penticton building when he heard shots

B.C. RCMP arrest foreign national in connection to airport thefts

A woman, 60, is being held in police custody as Richmond RCMP investigate

Police pursue pesky porker on Vancouver Island

‘This was allegedly not the pig’s first escape’

Westjet tries again to dismiss proposed class-action lawsuit alleging discrimination

Former flight attendant claims airline broke contractual promise to create harassment-free workplace

Man airlifted to hospital after apparent hunting incident in East Kootenay

The man was in stable condition when he was flown out of Fairmont Hot Springs to a Calgary hospital

Most Read