PBO warns of taxpayer losses on pipeline; Enbridge offers lower oil transport costs
1 report, 1 independent
Updated Apr 6
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What happened
The Parliamentary Budget Office warned that taxpayers could be losing $600 million annually on the Trans Mountain pipeline, despite reported earnings of $600 million after interest, taxes, depreciation, and amortization. This calculation is based on the pipeline's $35 billion cost to taxpayers and the government's borrowing cost of about 4.5 percent. Separately, Enbridge offered a lower cost option for oil transport.
From canadafreepress.com
Why it matters
The critique of the Trans Mountain pipeline's true return on taxpayer investment raises questions about the economic viability of major energy infrastructure projects. Enbridge's offering of a lower toll could strengthen its market position in the oil transport sector.
From canadafreepress.com
Who's involved
- Parliamentary Budget OfficeGovernment agency that warned of potential taxpayer write-downs on the pipeline
- EnbridgeCanadian energy transportation company that offered a lower cost oil transport option