TransMountain Subsidies

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CBJ — A new report indicates the federal government provided $320 million in subsidies for the stalled Trans Mountain pipeline project through the first six months of 2019.

The stipend included more than $135 million in direct money and another $185 million in indirect subsidies that were not clearly disclosed to taxpayers.

The report was tabled by the Institute for Energy Economics and Financial Analysis.

The Canadian government gave the development corporation just over $5 billion to finance the acquisition of Trans Mountain. The corporation is to make regular interest payments to the Canadian government at a rate of 4.7%. The cash was provided to Trans Mountain in two sections: a $2.8 billion loan and a $2.3 billion equity investment.

@CanBizJournal

 

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