Ottawa approves new $10B loan guarantee for Trans Mountain pipeline project

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

The federal authorities has authorized a brand new, roughly $10-billion mortgage assure for the Trans Mountain pipeline mission.

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The assure was authorized by cupboard on April 29 via the canada Account at crown company Export Improvement canada, which gives mortgage assure helps for Canadian companies.

EDC’s web site mentioned the canada Account is used to help tasks that are in canada’s nationwide curiosity, however that are topic to vital dangers together with mission measurement, borrower threat, or market threat.

READ MORE: B.C. adds conditions for Trans Mountain pipeline expansion, ministers say concerns remain

The Trans Mountain pipeline is canada’s solely oil pipeline system from Alberta to the West Coast. The development mission presently underway will basically twin the prevailing pipeline, elevating every day output to 890,000 barrels.

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

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On the time, finance minister Chrystia Freeland mentioned there can be no further public funding for the pipeline. She mentioned Trans Mountain would wish to safe third-party funding to finish the mission, both via banks or public debt markets.

© 2022 The Canadian Press


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