Trans Mountain expansion could never return the expected $26.1 billion spent by taxpayers

The report finds: 

• Between the $4.7 billion purchase price and the reported $12.6 billion construction costs, Canadian taxpayers have already funded $17.3 billion on the project.
• To complete the project, another estimated $8.8 billion will be needed. 
• Under typical market conditions, the pipeline will require a 100% increase in tolling revenues to make a profit. If this occurred, however, it would drive up the market price of Canadian oil to uncompetitive levels. 
• The government’s claim that it will use private dollars to finance the $8.8 billion is unsupported. 
• Given the project’s high financial risk, the government will not be able to obtain private investment unless it guarantees the $8.8 billion. 
• The government would also have to write off or subordinate all or part of its interest in the $17.3 billion that reportedly has already been spent. 
• Even if the Canadian government finds a buyer for the pipeline, under current market conditions, it will not receive a price that covers the $26.1 billion project costs, and any additional costs to come. 
• The $26.1 billion could have been spent instead on renewable energy development. It could have funded every major wind and solar project in Canada from 2019-2021 five times over, adding 15 gigawatts to Canada’s power supply—equivalent to the total energy capacity added from wind and solar projects built in Canada over the last decade.