OTTAWA—The federal government launched a rescue plan for the stalled Trans Mountain pipeline expansion, pledging $4.5 billion as a downpayment on its political vow to move more Alberta oil to markets. The Star answers key questions about the move:How much will it actually cost beyond the initial $4.5 billion?A lot. The $4.5 billion committed by the federal government simply buys the Trans Mountain pipeline and assets associated with the work done so far on the expansion. Some $1 billion has already been spent on work to twin the pipeline and analysts say it could take another $6 billion to $7 billion to finish. But there are other potential costs, even if Ottawa succeeds in finding another company to take on the project. The Trudeau government will extend indemnity or insurance to cover any “extraordinary” politically-motivated delays caused by any province or municipality, and will even promise to buy back the project if it confronts losses in the courts or cannot complete the project despite “commercially reasonable efforts.”Some critics argue that, in addition to actual project costs, the price tag should include the $1.5 billion over five years that Ottawa committed to a new Oceans Protection Plan, which beefs up coastal safeguards for Arctic and Atlantic waters as well as Pacific ones. It was a key demand by the former B.C. provincial Liberal government as a condition of its agreement to the project.In the event that the government does not find a buyer and gets stuck with the pipeline, is it a good investment?Federal officials hope to find another private sector company quickly, one with a greater appetite for risk than Kinder Morgan, to take on the project. If that fails, Canadian taxpayers will be the proud owners of a pipeline. Walid Hejazi, an associate professor at the Rotman School of Management, said that pipelines typically have “enormous returns.” The Trans Mountain pipeline now has a “revenue requir ...
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