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

Unplowed Roads parody song destined to be a classic

Move over Weird Al, Island elementary students on the same level

Watershed concerns prompt opposition to alternate Malahat routes

Motion submitted to Regional Water Supply Commission opposing highway in watershed

Vancouver measles outbreak prompts vaccine vigilance on Island

No cases here yet, but Island health authorities push measles vaccinations - and not just for kids

Robert Barron column: Thanks to municipal workers during snow storm

I’ve always wondered how anything gets done when mounds of snow fall from the sky.

Island fossil makes it to the top of the provincial list

Courtenay’s elasmosaur will be added to the official Provincial Symbols of British Columbia

‘Riya was a dreamer’: Mother of slain 11-year-old Ontario girl heartbroken

Her father, Roopesh Rajkumar, 41, was arrested some 130 kilometres away

CRTC report finds ‘misleading, aggressive’ sales tactics used by telecom industry

Report recommends measures to make a fairer situation for consumers

Trudeau takes personal hit amid SNC-Lavalin controversy: poll

Overall, 41 per cent of respondents believed the prime minister had done something wrong in the affair

B.C. photographer captures otters on ice

A Langley photographer was at the right place at the right time on the Fraser River

Snow not melting fast enough for some Greater Victoria residents

Resident unhappy with lack of snow removal on Mount Doug trails

‘Priceless’ hat stolen from Indigenous art store in Campbell River during break-in

Ernie Smith, co-owner of Awatin Aboriginal Art, looking for help in recovering stolen hat

Mid-Island dealing with high interest in backyard cannabis production

Regional District of Nanaimo reports dealing with rising desire for small-scale grows

North Cowichan to pause all logging in forest reserve for 2019

Municipality expects decision to cause $150,000 shorfall this year

UPDATED: Langford homes evacuated after water main break

Break at the corner of Goldstream Avenue and Strathmore Road, several homes without water

Most Read