The payout to EIG’s hedge funds reported today in the Globe and Mail raises important concerns. I can assure you that we looked at the financing at the time, and our contacts confirmed that EIG jumped in as the last resort financier with the sole objective of reaping the rewards of a Government buy out. Every other legitimate financing company turned down Eastern as the numbers made no sense. As the article alludes, the terms were one step away from a loan shark deal. Eastern NEVER had close to the amount of financing required to actually finish the project. We were told to be quiet and let them continue to build so that they eventually ran out of money and had to void the contract. After 7 + years we could not risk losing what amounted to our last chance to kill this project, so we kept the pressure on. It is an absolute disgrace that EIG ended up “winning” at this game at the expense of taxpayers. How these huge contracts get awarded to anybody other than a AAA company is a real concern and was a big part of our objections from the beginning. As I stated before, the Government had the opportunity to kill this many years before with minimal compensation required.
Gas Busters Part #16: Citizen Report re. Eastern Power and the Mississauga Gas Fiasco
I have received the following information from a private citizen who opposed the Mississauga power plant siting, posted here as an anonymous guest post:
Why should an AA province only deal with a AAA counterpart? All of the OPA counterparts are less creditworthy than the province itself.
The debacle, as with Ornge, points toward the criminal lobbyists complicit in these arrangements -Tom, please out them!