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

Baldwinsville boys soccer falls to Shenendehowa in AA regionals

first_imgBarely two minutes after B’ville went in front, Shen’s Jaylin Sikes put one past Andrew Taylor to tie it. Before the Bees could settle down, Reggie Durden, in the 14th minute, found the net.As if that wasn’t damaging enough, less than two minutes after Durden’s goal the Plainsmen attacked again, and once more succeeded as Rhys Hourmont got the goal.Three goals surrendered in a span of 10 minutes, from a team that had shut out 12 different foes this season, was a shock from which B’ville was unable to recover.Even though plenty of time remained, the Bees constantly met frustration in its attacks. Shen goalie Noah Flint dove to stop Tyler Johnson late in the first half, and Flint robbed Brennan Walsh with a diving save late in the second half.All told, B’ville took 13 shots, and Flint grabbed 12 of them, his work in the net the foundation of Shen’s latest state final four trip and the Bees’ latest state championship quest cut short of its ultimate destination.Now it will see another accomplished group of 14 seniors, including Kantak, Taylor, Tyler Johnson, Brennan Walsh, Dylan Killian, Sungwon Choi, Stephen Foertch, Nate Palmer and Riley Belknap, depart, their on-field legacy back-to-back sectional championships and a 2018 state final four appearance.Share this:FacebookTwitterLinkedInRedditComment on this Story Tags: Baldwinsvilleboys soccer Shen had reached the summit six times before – five of them in the early 1990s (including four in a row), plus another in 2005. But it didn’t look like B’ville was intimidated of this legacy.In fact, just four minutes, 23 seconds into the game, the Bees capitalized on a free kick, Jared Kantak firing the ball into the net. It would turn out to be the last goal of B’ville’s season.Partially that was because the Plainsmen, instead of getting discouraged by such an early setback, responded in a manner that no other Bees opponent could equal this fall.center_img Nice as it was to repeat as Section III champions, the Baldwinsville boys soccer team would not gain full satisfaction until it had done something far bigger – namely, win the program’s first-ever state championship.Doing so required the Bees to knock off traditional Section II power Shenendehowa in last Saturday’s regional final at Colonie High School, near Albany.And when the Bees went in front in the opening minutes, great possibilities seemed to open up – until a nightmarish 15-minute stretch of production from the Plainsmen ruined all of those plans, B’ville ultimately taking a 3-1 defeat.last_img read more