With the Trans Mountain Pipeline starting to ship oil this week, the whole country can breathe a sigh of relief that we are finally able to ship large amounts of oil out of Canada without having to go through the USA. The original cost in 2013 was supposed to be $6.8 billion ($8.8 billion in current dollars), which rose to $34 billion. Trans Mountain’s CFO, Mark Maki, has publicly stated that a review of the cost overruns and excessive time delays should be carried out to allow for some determination of the problems that large infrastructure projects face in their completion in Canada. The idea of such an examination is that it would look at the environmental laws, the impact of First Nations involvement (both as financial beneficiaries and as activists against the project), ownership, financing, and how we can get large infrastructure done at lower costs.
An examination of these problems in completing the pipeline gives Canada a wonderful opportunity to examine how to complete infrastructure in a more timely manner and at lower costs. The question is how best to complete this analysis. There appear to be two options. One is a Commission of Inquiry (formerly Royal Commission), where a Commissioner is appointed and has the authority to subpoena witnesses, evidence, and make recommendations to amendments to legislation. It also allows for public meetings and submissions to be made by the public. This is a very costly endeavor and can take a number of years. The second option would be to contract out a review to a third party such as an accounting firm or major management consulting firm, who would gather the information and report to the government. The Commission would be more costly, and may have a political overtone. The review by a consultant may be done quicker, but may not have the same impact.
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