Trans Mountain pipeline costs are adding up for Canadian government

first_img FacebookTwitterLinkedInEmailPrint分享National Observer:The Trans Mountain oil pipeline is costing a Canadian Crown corporation some staggering interest expenses that cast doubt on strong revenues from the infrastructure touted in the federal government’s recent economic update.The interest expenses were $20 million over a single month in September, right after Prime Minister Justin Trudeau’s government purchased the pipeline and related assets from Texas energy company Kinder Morgan for $4.5 billion. As part of the purchase, the government also had to set aside an additional $500 million as a security deposit in case of environmental damage, and this appears to be part of the interest expenses.If the interest expenses continue to pile up at that rate over the year, they will come to represent a larger sum than the amount of money that the government has said the pipeline is on track to raise this year primarily from toll charges.Oil pipelines earn revenues by charging tolls to companies that are shipping fuels on the infrastructure. The Trudeau government has said that the proposed Trans Mountain expansion project, if completed, would generate more revenues and could be sold back to the private sector, along with existing assets, as a profitable venture.In a new quarterly report, the Canada Development Investment Corporation (CDEV), the Crown corporation that now owns and operates the pipeline through a network of subsidiaries, said it incurred $21.27 million in interest expenses related to Trans Mountain during the third quarter ending Sept. 30.The pipeline from the oil patch to the west coast and its related expansion project was acquired by Ottawa in a deal that cleared Aug. 31. These two dates represent approximately a month’s worth of expenses, or $255.24 million over the year. That is well above the “over $200 million” that Finance Minister Bill Morneau’s fall fiscal update said the pipeline was on track to make in “earnings before interest, taxes, depreciation and amortization,” or EBITDA, a type of metric used in finance to show a performance snapshot. EBITDA doesn’t include things like capital investment costs or expenses linked to debt.Tom Sanzillo, director of finance at the Institute for Energy Economics and Financial Analysis, co-authored a report in June with Kathy Hipple, a financial analyst at the institute and corporate finance lecturer at Bard College, stating that the Canadian government was facing at least $11.6 billion in costs to complete the pipeline. “This transaction and the cost of further planning and construction could add a $6.5 billion unplanned expenditure to Canada’s budget during FY 2019,” the report states, boosting Canada’s projected deficit by 36 per cent.Sanzillo told National Observer that while it is not uncommon for a government economic development transaction to keep revenues, capital costs and operational expenses separate, the interest expenses and fiscal update numbers represent an incomplete picture. “For a project of this size and importance,” said Sanzillo, “the executive has a responsibility to also produce an all-in-one, true and accurate inclusive project accounting that answers the question: ‘How much is this costing the Canadian taxpayer?’ These financial disclosures are partial, and absent a full accounting, are irrelevant. Because it is only a partial explanation, it says nothing about the financial viability of the project.”More: The Trudeau government’s Trans Mountain purchase has triggered staggering interest expenses Trans Mountain pipeline costs are adding up for Canadian governmentlast_img read more

Christmas posts double-double with 7 blocks, leads Syracuse as lone healthy center

first_img Facebook Twitter Google+ Published on February 16, 2014 at 1:01 am Contact Stephen: | @Stephen_Bailey1 Rakeem Christmas wagged his pointer finger three times as he strode back toward the Syracuse bench.The Orange had survived again. With the weight of an undefeated No. 1 team on his back, it was Christmas — the team’s lone healthy center — who walked the foul-trouble tight rope once more to lift Syracuse to its second straight victory without Baye Moussa Keita.“Rakeem played a great game for us,” SU forward C.J. Fair said. “If he doesn’t play the way he played, we don’t come out with the win.”Christmas turned in arguably the best performance of his career with a team-high 14 points, 12 rebounds and seven blocks as the top-ranked Orange (25-0, 12-0 Atlantic Coast) staved off North Carolina State (16-9, 6-6) 56-55 in the Carrier Dome on Saturday.He knocked down all six of his free throws in the final 10:08 and made the defensive play Syracuse needed in the waning seconds, jumping Anthony Barber’s pass to Kyle Washington and starting the break that resulted in Fair’s game-winning layup. But most importantly, he put SU in position to beat the Wolfpack by committing just three fouls, and altering more than just the shots he got his hands on.AdvertisementThis is placeholder text“I thought he was really the difference in the game,” SU head coach Jim Boeheim said.Christmas’ dominance started early. First, a 15-foot jump shot from the right wing. Then a pair of powerful slam dunks. And finally an impressive save underneath the basket that nearly led to a Trevor Cooney 3-pointer.With the rest of SU’s frontcourt floundering, he was the lone constant. After a swatting of N.C. State guard Tyler Lewis with 5:31 left, even Boeheim clapped.“I was just trying to go out there and block everything,” Christmas said. “They were trying to take a lot of jump shots, and I was lunging at them and I was getting them. I was just trying to do that and be disruptive.”Christmas blocked six more shots in the second half, commandeering an interior resilience that limited N.C. State to grabbing just 13 rebounds after the break.Each time the Wolfpack penetrated the 2-3 zone, Christmas was there to either block or alter the shot attempt.He rejected T.J. Warren’s jumper 18 seconds into the second half and then Jordan Vandenberg’s two minutes later.He turned Warren away twice more in the following three minutes before denying Barber’s baseline drive at the 12:56 mark.Christmas said he’s mastered the process of deciding whether or not he’ll try to block a shot. If there’s space between him and the offensive player, he’ll go for it. But if their bodies are already in contact, he’ll just stick his arms straight up.It’s been a gradual process, but one that’s paid tremendous dividends in SU’s two games without Keita and sophomore center DaJuan Coleman, who underwent season-ending knee surgery on Jan. 28.“I’ve been doing that since high school,” Christmas said. “That’s one thing I’ve learned to do is block shots.”It wasn’t until this summer, though, that Christmas put as much effort into his free-throw shooting. Christmas said assistant coach Mike Hopkins pushed him to practice at the line throughout the off-season.After shooting 57.4 percent from the foul line last season, the junior is up to 68.4 percent. And when the Orange needed him on Saturday, he came through when Jerami Grant, Tyler Ennis and Fair didn’t.His last free throw gave SU a 51-50 edge with 4:43 to play.“It’s something that now we’re getting used to and we’ve got to expect,” Grant said. “If he didn’t play like this, we would’ve lost this game.”But Syracuse didn’t.After Grant and Cooney trapped Barber in the corner, Christmas swiped his pass and flipped the ball to Ennis. Moments later, Fair hit a layup and the Orange escaped with its second exhilarating win of the week.Keita is expected to return soon, and when he does much of the pressure currently placed on Christmas will be relieved.But until that happens, Syracuse will need him to continue his high rate of efficiency if it wants to stay undefeated.Said Christmas: “Without DaJuan and Baye, I have to step up.” Commentslast_img read more