Trans Mountain pipeline construction costs balloon again, this time to $30.9B
CTV
The estimated cost of the Trans Mountain pipeline expansion project has increased once again, this time to $30.9 billion.
The estimated cost of the Trans Mountain pipeline expansion project has increased once again, this time to $30.9 billion.
That's the latest figure from Trans Mountain Corp., the federal Crown corporation that owns the pipeline. On Friday, Trans Mountain Corp. blamed the latest cost overruns on a number of factors, including inflation, labour and supply chain challenges, flooding in B.C. and unexpected major archeological discoveries along the route.
The new price tag is a 44 per cent increase from the $21.4 billion cost projection placed on the pipeline expansion project a year ago, and more than double an earlier estimate of $12.6 billion.
Previous cost increases were blamed on the COVID-19 pandemic, scheduling pressures related to permitting processes, and route changes to avoid culturally and environmentally sensitive areas, among other things.
"Canada has among the world's highest standards for the protection of people, the environment, and Indigenous participation when building major infrastructure projects," said Trans Mountain Corp. CEO Dawn Farrell in a news release Friday.
"By including these commitments into the Project design and development from the beginning, we have ensured the Project will provide economic benefits to Canadians well into the future."
Trans Mountain Corp. said it is now in the process of securing external financing to cover the remaining cost of the project.
