In January 2019, PBO released a report assessing the Government of Canada’s 2018 decision to acquire, expand, operate, and eventually divest of the Trans Mountain Pipeline system.
This report provides an updated financial valuation of the purchased assets, estimates the valuation’s sensitivity to several key factors, and projects the economic impact of the Expansion Project’s construction activities.
Subsequent to our publication, a parliamentarian made a further request regarding a break-even calculation. Specifically, the year in which the cash inflows to the pipeline would fully offset the non-discretionary cash outflows. The parliamentarian further requested that the cash flows not be discounted for the time value of money or financial risk.
Using such specifications, our modelling indicates that the cash flows would offset one another in 2036.