Canada’s purchase of the Trans Mountain Pipeline – Financial and Economic Considerations - Update

This note responds to additional questions raised by parliamentarians following the release of our report. To ensure equal dissemination, we decided to incorporate our responses in this posting. Specifically, we examine the current operating results of the existing Trans Mountain Pipeline system; the inclusion of capital gains tax revenue in the assets’ valuation; an alternate specification for the fiscal sensitivity of construction delays; and, the certainty of shipper contracts.