Canada’s six largest banks, including TD, RBC, CIBC, BMO, the National Bank of Canada, and Scotiabank, have increased financing for the Trans Mountain pipeline expansion (TMX) by $3 billion to cover the project’s rising cost overruns. The information was sourced by environmental non-profit Stand.earth from a Bloomberg Terminal, and not by Canadian Banks or Finance Canada, as Trans Mountain is a Crown Corp. The involvement of only Canadian banks reflects how financial institutions worldwide view tar sands-related projects. TMX has faced opposition from environmentalists and some Indigenous communities, experienced construction delays and cost increases, and has seen insurers withdraw support. The project’s finances remain opaque, and taxpayers may bear a significant portion of the debt. Experts doubt the company’s ability to repay the banks based on construction costs, tolls, and oil markets. Trans Mountain says TMX will be completed by the end of the year and begin operating in 2024.
