Parliament’s spending watchdog Yves Giroux warned there is a high risk that delays and cost overruns will mean the Liberal government overpaid when it spent $4.4-billion last year to purchase the Trans Mountain pipeline, its related expansion project and other assets.
In a report released Thursday, the Parliamentary Budget Officer estimates the value of the Trans Mountain pipeline and the expansion project at between $3.6-billion and $4.6-billion. The PBO’s figure does not include related assets such as pipeline terminals that were included as part of Ottawa’s transaction with Kinder Morgan Inc.
“If it was a car, we’d say they paid sticker price. They didn’t negotiate very much,” Mr. Giroux said. “Should there be a delay in construction costs or an increase in construction costs, then it’s quite clear to us that the government will have overpaid.” Mr. Giroux said those scenarios appear likely. Continue Reading →