Ottawa approves new $10B mortgage assure for the Trans Mountain pipeline challenge

OTTAWA – The federal authorities has accepted a brand new, roughly $10-billion mortgage assure for the Trans Mountain pipeline challenge.

The assure was accepted by cupboard on April 29 by way of the Canada Account at crown company Export Growth Canada, which gives mortgage assure helps for Canadian companies.

EDC’s web site stated the Canada Account is used to help initiatives that are in Canada’s nationwide curiosity, however that are topic to vital dangers together with challenge measurement, borrower threat, or market threat.

The Trans Mountain pipeline is Canada’s solely oil pipeline system from Alberta to the West Coast. The development challenge at present underway will primarily twin the present pipeline, elevating each day output to 890,000 barrels.

In February, Trans Mountain Corp. introduced the projected price ticket of the challenge had spiraled to $21.4 billion, up from an earlier estimate of $12.6 billion, because of newly disclosed finances overruns.

On the time, Finance Minister Chrystia Freeland stated there could be no extra public funding for the pipeline. She stated Trans Mountain would wish to safe third-party funding to finish the challenge, both by way of banks or public debt markets.

This report by The Canadian Press was first revealed Could 11, 2022.

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