In December 2020, PBO released a report assessing the Government of Canada’s 2018 decision to acquire, expand, operate, and eventually divest of the Trans Mountain Pipeline system.
This report provides an updated financial valuation of the purchased assets and estimates the valuation’s sensitivity to several key factors.
In this update, PBO finds that the Government’s 2018 decision to acquire, expand, operate, and eventually divest of the Trans Mountain assets will result in a net loss for the federal government as calculated on a Net Present Value (NPV basis).
PBO also examined a scenario where the Trans Mountain Pipeline expansion is stopped after June 2022 and cancelled indefinitely. Under this scenario, the Government would need to write off over $14 billion in assets. The net impact would result in a significant financial loss for the Government and would lead to the Trans Mountain Corporation no longer being a going concern.