University of Calgary economist Trevor Tombe said the deal is structured as an equity investment that will allow the government to sell its shares after the project is completed, and therefore poses little risk to the taxpayer. He said the government’s balance sheet is strong, and its ability to borrow has obviously not been impacted by the current COVID crisis.
“If TC Energy was in the position where it was having trouble accessing credit, if that company was teetering on whether to go forward with construction or not, then the case for using public funds is pretty strong,” Tombe said.
But Chris Severson-Baker, Alberta director for clean energy think-tank The Pembina Institute, said there’s no guarantee Keystone XL will go ahead. The project still faces opposition and litigation risks south of the border, and it’s unclear what impact the potential election of a Democrat to the White House in November could have on the project.
