Giroux said federal officials will be hard-pressed to find a private buyer willing to pay a premium for the now-operational pipeline that cost the government more than $34B
OTTAWA — Parliamentary Budget Officer Yves Giroux said on Monday Ottawa is likely to lose money on its eventual sale of the Trans Mountain pipeline, after shelling out more than $34 billion to complete the project.
“If the Trans Mountain pipeline system were sold in 2024 (present values), the government would record a loss on the sale,” Giroux said in a brief opening statement.
The two were on hand to answer questions from MPs about the assumptions underpinning the PBO analysis, which estimated that the pipeline would fetch between $29.6 billion and $33.4 billion on the open market.
Giroux told the committee that much of this will depend on whether its initial 20-year contracts are renewed in the early to mid-2040s. He indicated that contracts are less likely to be renewed if there is abundant excess pipeline capacity by then.
“The government is currently in a situation where it owns an asset, and the value of the asset is determined, in part, by its own policies,” Giroux said in an exchange with Conservative MP Jeremy Patzer.
He added that the PBO is currently studying the emissions cap’s broader economic impacts.
However, he also stressed that this didn’t necessarily mean Freeland was lying, as she could have been speaking on the basis of privileged information.
“It’s possible that (Freeland) has had discussions with potential buyers,” Giroux told NDP MP Rachel Blaney.
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