IEEFA – Canada Should Learn From the Trans Mountain Pipeline’s Fiscal Issues

The main topic of the document concerns the financial issues related to the Trans Mountain Expansion pipeline project in Canada.

Key findings include the use of public funds to finance large oil pipelines may exacerbate Canada's already growing national debt. Rising construction costs for TMX and government subsidies are a warning against using public funds when business walks away from a project. Replacing private investment in the TMX project with even more public debt. Canada's ability to recoup its investment in TMX is threatened by difficulties in setting oil transportation tariffs. Canada may recover less than half of the $35.6 billion invested in TMX, and taxpayers are likely to incur losses.