Update on Trans Mountain Expansion Project
May 11, 2022 - Ottawa, Ontario - Department of Finance Canada
On February 18, 2022, the federal government provided an update on the Trans Mountain Expansion Project. With 50 per cent of the pipeline already built and the project significantly de-risked, the federal government announced that no additional public money will be spent on the project and Trans Mountain Corporation would secure the funding necessary to complete the project with third-party financing.
In advance of the corporation securing this third-party financing, in December 2021, the government approved $1.75 billion in bridge financing to ensure construction remained on schedule, which has been repaid in full with interest.
The corporation has now secured up to $10 billion in third-party financing with a group of Canadian financial institutions, which will be used to fund the project's construction costs. The financing will not change the cost estimate and 2023 completion date outlined in February.
As part of this process, the federal government is providing a loan guarantee on behalf of the corporation. This is a common practice which puts in place an insurance policy for the institutions that have invested in the project—it does not reflect any new public spending. The corporation will pay a fee to the federal government for this guarantee. The Government of Canada has not spent any money to put this guarantee in place.
This project is in the national interest and will make Canada and the Canadian economy more sovereign and more resilient. The federal government intends to launch a divestment process after the expansion project is further de-risked and after further consultation with Indigenous groups about economic participation has progressed.
Media may contact:
Office of the Deputy Prime Minister and Minister of Finance
Department of Finance Canada
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