Federal government faces potential loss if Trans Mountain pipeline sold: PBO – Construct Connect
November 11, 2024
OTTAWA — The federal government faces a potential loss on the sale of the Trans Mountain pipeline as it estimates it’s worth less than it cost to build, the Parliamentary Budget Officer (PBO) said recently.
The pipeline could be worth between $29.6 billion and $33.4 billion, depending on what happens after the initial 20-year contracts expire, the budget watchdog said in an updated financial assessment of the controversial project.
Meanwhile, the cost to build the pipeline, which went into service in May, came in at $34.2 billion, dramatically higher than the $7.4 billion estimate in 2017.
The PBO’s valuation estimate doesn’t factor in sunk costs, such as the $4.5 billion the federal government paid to buy the project in 2018, or capital spending before 2024.
