The Canadian government’s purchase of the Trans Mountain Corp. pipeline will end up sticking the country’s taxpayers with a large debt that won’t be repaid, an environmental law group warned.
A 70 per cent rise in the cost to expand the sole oil pipeline running from Alberta to the Pacific Coast increased the project’s debt burden to $25.8 billion, West Coast Environmental Law said in a report written by economist Robyn Allan and released Thursday.
Prime Minister Justin Trudeau’s government has said it intends to sell Trans Mountain, and a number of indigenous groups are pursuing an ownership stake. It isn’t clear when a deal might get done. Allan’s report says that by the end of next year, the company will owe taxpayers $17 billion, and the government has guaranteed another $10 billion in bank debt for Trans Mountain.
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