Kinder Morgan Canada plans to restart construction on the Trans Mountain pipeline in August.
But to do that, it needs cash that doesn’t come from its own coffers, since the company halted spending on the project in April and will sell it to the federal government within the coming months.
How much cash exactly?
Up to $1 billion, according to an official from the Department of Finance, and it will not need to be repaid by the company.
Instead, the money will be made available in a fund backstopped by Export Development Canada that the company can draw from as it encounters costs from restarting work on the project.
Beauty.
All laid out in Justin’s forthcoming book “The Fart Of The Deal”.
What a total mess! Everything this government touches turns to hog manure. I wonder what George Soros and the US foundations will do? What will the loonies in the lower mainland do? The comedy soap opera continues.
I didn’t see where the money was budgeted to buy off the anti-pipeline Indian bands.
I could easily see Trudeau somehow pissing off and alienating the traditionally Liberal-friendly Indians on this one, especially since he is now well experienced from pissing off and betraying Indians on other continents.
The ‘man’s’ reign is slowly becoming a train wreck.
The Indian bands have been bought off by American “charity” money from the ides Foundation amongst others. Butts knows this very well, having been head of the WWF. KM will bget the $1billion and the pipeline will still not be built.
The Conservatives should run on an aggressive pro-pipeline and resource development platform.
It’s not budgeted. That’s the problem. What they’re using is the EDC to shell out the money in the event that the loan guarantee is needed. However, that’s not enough, because the EDC is run like a bank. It operates on normal banking risk assessment and would not necessarily accept this risk without a hefty premium being paid by the company undertaking the project (Kinder Morgan).
So what will likely happen is that should the loan guarantee be tapped, the government will have to top up the EDC financial reserves in the next budget. It’s not just the scandal of how badly they’ve mismanaged things with Kinder Morgan. It’s also about how the government is turning EDC into a private Liberal piggy bank for a source of off-budget financing.
The question now is what commitment has the government made to EDC to get them to accept this loan guarantee.
The Indian bands along the route were already bought off by Kinder Morgan. The Indian bands along the Northern Gateway Pipeline are all pissed off. The were appealing to get more cash and then the project was cancelled and they got none.
Kinder Morgan line started in 2013 and Northern Gateway in 2010. Where the hell was Harper?
Is my memory failing me, or did not Trudeau in his campaign of 2015 said he was against building that pipeline?
PS: I’m 100% Canadian but I follow USA politics more closely than Canadian politics.
Several of the older Liberal members of parliament had to take JT aside and explain to him where money actually comes from.
And fighting veterans groups in courts “because they’re asking for more than we’re able to give right now.”
PM Douchebag – mortgaging Canada’s future for the good of the LPoC.
If I tried that I would be in jail. What a screwed up country.
Hugo Chavez would be so very proud of his Canadian ballerina!
I think you mean…”Fidel Castro would be very proud of his bastard son.” There fixed it for you.
I was watching a netflix documentary about Cuba a few days ago, and young Castro does look amazingly like the clown prince. (although he didn’t have that vacuous aura)
Conspiracy theories always bring out my skeptical side, but if these characters were all living in your neighborhood, i guarantee more than one person would be chuckling about the resemblance..
No meaningful work will be done on this project while Trudeau is at the helm. He can’t be for pipelines and against fossil fuels at the same time. While he can and he is, but he can’t be that two-faced and win another election. Can he? Are Canadians stupid enough to vote for him a second time? If so this pipeline won’t be started for at least 6 more years. Meanwhile Trudeau is burning through our money with deficit spending while the Canadian economy is not in a recession.
“Are Canadians stupid enough to vote for him a second time?” Well, it appears there were enough stupid people in Canada to vote for him the FIRST time! I don’t think that “stupid” necessarily cures itself.
Trudo didn’t want a FAILURE posted on his door…So he announced that the Government was buying KM , but they would be selling the whole lot to a new buyer…Nobody stepped forward & now they have to pay KM up front costs.. fake economics 101
BTW: The NAFTA issue is more serious than Turdo thinks…. Before NAFTA I was a Canadian Broadcast Engineer working for the NBC Network in NYC.. If I purchased Canadian Broadcast equipment I was required to provide a justification Memo that Finance & Purchasing put in the file. It was used in case of a Dept of Commerce complaint from a competing US Firm. The threat to an American Engineer discouraged buying Canadian because no matter how diligent you wrote the memo another vender Engineer would find some fault… Chilling is the word
I wrote many Memo’s for myself & others knowing that because I was Canadian that fact would supersede a technical challenge.. NBC senior Management may have has been asked why they employed a F&&ing Canadian…but nothing came back. After NAFTA Canada fit the most favored Nations and no memo was necessary. If NAFTA goes away the Memo may come back & that would hurt everywhere…
I am now an American with no free passes
Bang on. The Spawn decided to max-out the credit cards of the unborn to save him from being exposed to KM cancelling the expansion on the grounds that the federal and most provincial governments have made investing in Oil sector infrastructure a black hole. This ensured that the brain dead will erroneously think the Spawn might build the expansion and continue to support him. It will be interesting come the next Federal election with the pipeline expansion more or less stalled.
But . . but . . . but he’s killing off the unborn before they get their credit cards! How’s that gonna work?
And I suspect that would be bad for Ross Video here in Ottawa
John Ross? Never heard of him… in Ottawa… was a little guy southeast (Indian name) of Ottawa .. I do remember Leitch in Toronto
& Miranda in Quebec… I was a Canadian, but I never bought Canadian unless it had features that I needed. . A Sound choice
Will believe it when the shovel sinks in the ground.
This seems like a remarkably sweet deal for the pipeline company and the construction companies.
I wonder how many $2,000 hammers and $40,000 toilet seats will be in the invoices.
I wonder which political party will get sweet, sweet donations from pipeline companies.
Don’t worry, the people who developed the Phoenix payroll system will be put in charge and it will all work out.
There is no chance in Hell that that the KM pipeline will be built.
The next shoe is about to drop following the upcoming NATO meeting when the President slaps Trudeau around again. We have been way below our previously committed 2% defence spending for decades now and that is about to be stuffed down our throats. Again! Peacekeeping? Give me a break!
Goodness knows that the BC ferry system is the only thing patrolling our west coast. I have no idea what is looking after the east coast, maybe Air Canada or Westjet keeping an eye on the sea traffic. I am eternally thankful for the Eskimos roaring around in the arctic on the (Bombardier, I’m sure) skidoos. They are most certainly keeping the Russians at bey! Icebreakers? China had 4 under construction a few years back. Why? The US has some as does Russia. I wonder if we can maybe purchase some from Britain or someplace. Those subs were great weren’t they!
No, we can’t build a pipeline (but pipeline companies can). We can’t even reverse the flow in an existing pipeline because may offend some unemployed idiots with camping gear. Gas today is about $1.40 !
But maybe we can go to the polls and gift Maggie’s son with another majority so he can stand up for our rights against our southern neighbor.
Just a few thoughts.
The worshipers of GAIA chain themselves to pipelines I would like to see them clean up a highway instead
I’d rather see them foul one.
Since this mock deal seems to have multi-directional benefits for the Liberal party, we are all in a very good place, no?
What’s good for the Liberal Party, is good for the nation, the planet, the universe.
GAIA = Mother Earth. Miserable ***** in the winter.
I think the new ownership group will be made up of the Indians that oppose the pipeline. The promise of some cash will persuade them to get on side.
The rest of the consortium will be fwenchmen and assorted librano friends. The operation of the pipeline will produce some nice profits.
As to whether the pipeline actually gets built…..KXL goes right past my place. The river crossings were completed years ago. The pipe is racked along the right-of-way – rusting. No construction going on.
There is an alignment proposed across the north part of BC that is endorsed by the locals/Indians, and if the yahoos south of the Alaska Panhandle reject it, the authorities and inhabitants in Hyder, Ak. say “Bring it on!”
The people in favor of this proposal (who have been quietly working on it for 5 or so years) are comprised primarily of Indians, so they have many of their bases covered.
The Greenpiecers may have to chain themselves to some things that have no cameras in the area. Could get interesting… :-))
It is my understanding that a consortium of pro-pipeline bands already wants to buy in. They include bands from northern Alberta who are heavily involved in the oil sands.
Many are realizing their are boatloads (literally, boatloads…) of money to be made here.
well I must say, pm ponysocksturd is gaining fast on wynnedfarm’s spot as the most disastrously inept LIEberal leader in the whole 150+ years history of the nation.
Like Lev, I will believe that this goes ahead when shovels hit the ground along the lower Fraser between Hope and Burnaby.
The mind boggles at the wasted money, wasted times, and lost earnings involved in this massive screwup. Trudeau, Horgan, Weaver et al should be tarred and feathered and run out of the country.
With Premier Ford now in charge of Ontario, lets get Energy East rolling again, at least to fuel Ontario.