Canada may have over paid for the Trans Mountain pipeline project by nearly 1 billion dollars, a number which, according to a new report, could still grow.
A Parliamentary Budget Office report released today pins the value of the project between 3.6 and 4.6 billion dollars.
Ottawa purchased the pipeline expansion project from Kinder Morgan last August for 4.5 billion dollars.
According to the PBO’s report, however, further delays could lead to an even larger reduction in value.
If the project is delayed beyond the December 31st 2021 completion date, the report estimates a further 700 million dollar hit in valuation.
If approved and built on schedule, the PBO is forecasting a 6 billion dollar annual impact on GDP between 2019 and 2023.
Should the expansion project be canned in its entirety, the report values the pipeline at 2 billion dollars.
