RE:RE:Wow, talk about cost escalationObscure1 wrote: ENB built its similar length Line 3 pipeline through multiple Provinces and States over 6 years under intense opposition. ENB's final cost was $9.3 billion despite the fact that construction was undertaken in the dead of winter in Minnesota and completed during the pandemic.
In 2017, the year before Trudeau bought TMX from KMI, ENB's cost estimate for it's Line 3 upgrade was $8.2 billion. That means all the delays, Covid, and winter construction only increased ENB's cost of building Line 3 by 13%.
Now that theTMX is estimated to cost $21.4 billion, Trudeau has cut off federal funding and the completion date has been pushed back another 9 months. That means equity partners will be brought in who will walk away with sweet heart deals.
Thanks Justin
Your point illustrates a number of well known issues...
1....As a general rule the average Public Servant in Ottawa knows sheet about business and probably couldn't intelligently read a Q report if their life depended on it
2....When Government buys a business its bottom line has nothing to do with the bottom line of a financial statement. Their bottom line is whether the decision will garner votes in the next election
3...from Point 2 - Governments will change direction not based on economics or financial considerations but rather on political winds and polling results which inherently leads to nonsensical decisions
Your last statement is very important from an investment point of view.
Follow the money - whoever picks up the spoils will most likely be a good investment decision and buying their stock will most likely pay off.