Project Cost and Schedule
To date, Trans Mountain has spent $2.5 billion on the Expansion Project and it is anticipated that an additional $8.4 billion will be spent to complete the Project, plus $1.7 billion of financial carrying costs for a total cost estimate of $12.6 billion. The in-service date is expected to be December 2022.
Breakdown of Project Costs
The Project today is a very different project from the last time a cost estimate was completed. There are two broad categories, with an approximate fifty-fifty split, that explain the variation in cost estimate in 2020 versus 2017:
- Refined project scope and improvements, risk management, and contingencies: Since 2017, Trans Mountain has completed final, detailed engineering work and has included additional safety and environmental standards that comply with the current regulatory context and the 156 conditions from the Canadian Energy Regulator. There are also additional commitments that have been as part of Phase III consultations with Indigenous groups that have been outlined by the Government of Canada. There is also a $500 million in contingency, which is appropriate for a large-scale infrastructure project of this size and complexity.
- Impact of the 2018 Federal Court of Appeal decision: Delaying construction for approximately one year had a significant impact on the Project budget. This increase includes higher cost of land acquisition, higher labour costs that reflect market conditions, as well as higher costs related to safety and security.
The company has also recommended to the Government of Canada in its capacity as owner and lender, a further $600 million reserve for cost impacts beyond the control of Trans Mountain.
Employment & Training
As of December 31, 2019, Trans Mountain and our contractors have:
- Hired more than 2,900 people, with more than 300 Indigenous hires
- Trained more than 825 people, more than 110 have been Indigenous
- $21 million in education and training funding, programs and initiatives
- Spent almost 7 million person hours on the Project
Major Activities Update and Future Workforce Forecasts
Current workforce forecasts will see 5,500* people employed at peak construction period in mid to late 2021. Trans Mountain is committed to prioritizing and maximizing Indigenous, local and regional hiring to the greatest extent possible.
