Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, released the following statement regarding Trans Mountain Corporation's (TMC) update on the Trans Mountain Expansion Project:
"The federal government acquired TMC and the Trans Mountain Expansion Project in 2018 because we knew it was a serious and necessary investment-one that is in the national interest and will make Canada and the Canadian economy more sovereign and more resilient.
"When complete, the Trans Mountain expansion will ensure Canada receives fair market value for our resources as we work to achieve net-zero by 2050.
"And by creating thousands of good-paying Canadian jobs, the project today continues to be an important investment in Canada's economy.
"To date, TMC has signed agreements with 81 Indigenous communities worth over $657 million, and the project has generated over $4.8 billion in Indigenous-based contracts. Our government continues to work with Indigenous communities on further economic participation in Trans Mountain.
"TMC today released its revised cost estimate and confirmed the project is expected to be completed by the end of 2023 and operational in early 2024.
"As we committed to Canadians last year, no additional public money will be invested in this project as construction is completed. The federal government does not intend to be the long-term owner of the project, and we will launch a divestment process in due course."
Quick facts
- BMO Capital Markets and TD Securities have been engaged by the government to provide advice on certain financial aspects of the project. Their analysis confirms that third-party financing is a feasible option to fund the completion of the project and believe that both strategic and financial investors would participate in a divestment process to acquire the company once the project becomes operational. They also note that it is a prudent financial decision to finish construction of the approximately 20 per cent remaining of the project and that TMC will be commercially viable upon project completion.
