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

Women’s soccer notches two Pac-12 victories

first_imgUSC could not claim its victory yet, though, as ASU earned a penalty kick with a mere 21 seconds to play. Sophomore forward Nicole Douglas stepped up for the Sun Devils and fired a shot toward the right side of the goal, but sophomore goalie Anna Smith came up with the game-winning save, and the Trojans escaped Tempe with a 2-1 victory. The Trojans had to battle not only the Wildcats but also the heat Sunday afternoon, as the thermometer read 90 degrees at kickoff. “This was a fantastic win for us,” McAlpine said. “Very difficult conditions, a great team across from us that knows how to compete [and] how to fight. We were able to defend really well and fight through when we needed to.”  “Huge win on the road — we’ve got some things to fix, but we’ll take it and we’ll move forward,” McAlpine said. The Trojans took a 1-0 lead in the seventh minute as freshman midfielder Jaelyn Eisenhart’s corner kick bounced off an ASU defender and into the net. It was the first own goal in favor of USC this season. Graduate midfielder Natalie Jacobs wards off a defender. Jacobs set up freshman defender Kaylin Martin for the game-winning goal against Arizona State Thursday, bringing her to four assists on the season. (Ling Luo | Daily Trojan) This time, the opening goal would be all USC needed as its defense buckled down and secured its third shutout of the season. It was also the first time Arizona has been held scoreless at home so far this season. The Trojans held the lead until the 62nd minute, when ASU sophomore midfielder Marleen Schimmer found the back of the net on a right-footed strike. Schimmer was a player that the Trojans looked to contain, but the talented midfielder was able to score despite the defensive attention. No. 2 USC women’s soccer has returned to its winning ways after a successful weekend in Arizona, where it defeated Arizona State 2-1 and Arizona 1-0. The Trojans improved to 9-1-1 overall and 2-1-0 in Pac-12 play.  McAlpine was pleased with the result of the game but knew his squad could improve in a few areas before facing Arizona Sunday.  USC’s first game against ASU Thursday was a thriller that went down to the final whistle. “They were very disciplined in their tactics,” McAlpine told USC Athletics. “Even when we got that early goal, they stayed with it and found a way to get that goal.”  Martin’s first goal against Arizona State Thursday was not her only first of the weekend. In the 38th minute, she picked up her first assist on a through ball to junior forward Tara McKeown. McKeown leads the Trojans with 9 goals on the season. ASU continued to cause problems for the Trojans throughout the second half, making it difficult for USC to find chances offensively. USC head coach Keidane McAlpine said the Sun Devils did not get discouraged after falling behind early. McAlpine said he was proud of the effort his team put forth despite the heat. As the clock wound down, it seemed the match was destined for overtime. Early in the 90th minute, however, a cross from redshirt senior midfielder Natalie Jacobs found the head of redshirt freshman defender Kaylin Martin, and the Trojans took a 2-1 lead with 38 seconds to play. It was Martin’s first goal of the season, and she became the eighth Trojan to score in 2019. USC is now above .500 in Pac-12 play with a record of 2-1. The Trojans will have a few days off before facing Utah 3 p.m. Thursday at McAlister Field.last_img read more