Twice the price and just as nice: Irving’s Arctic patrol ship double the cost of previous five

Twice the price and just as nice: Irving’s Arctic patrol ship double the cost of previous five

The project was to build five ships, each at $400 million, and only proceed with a sixth if Irving could find savings within the existing budget. That didn’t happen

Royal Canadian Sea Cadets wait for the start of the naming ceremony for Canada’s lead Arctic and Offshore Patrol Ship, the future HMCS Harry DeWolf, at Halifax Shipyard in Halifax on Friday, Oct. 5, 2018. ANDREW VAUGHAN/CP

Building a sixth Arctic patrol ship to add to the five originally commissioned from Irving Shipbuilding for the Royal Canadian Navy will cost taxpayers $800 million — double the price-tag of each of the other vessels. The Liberal government announced the construction of the sixth Arctic and Offshore Patrol Ship, or AOPS, last week after a push by Irving and its employees for additional work. The construction of the sixth vessel shows the government’s commitment “to maximizing stable employment” for Irving while providing equipment to the navy, Carla Qualtrough, Minister of Public Services and Procurement Canada, said in a statement. Each Arctic and Offshore Patrol Ship, or AOPS, costs $400 million. But the decision to build another such vessel comes with additional costs since the federal government is stretching out construction of that ship and a number of others to allow Irving employees to retain their jobs until a new fleet of larger warships, called Canadian Surface Combatants, is ready for construction.

Halifax Shipyard shipbuilders attend the naming ceremony for Canada’s lead Arctic and Offshore Patrol Ship, the future HMCS Harry DeWolf, in Halifax on Friday, Oct. 5, 2018. ANDREW VAUGHAN/CP

Another $150 million will be required to extend the production schedule at Irving, said Pat Finn, the assistant deputy minister for matériel at the Department of National Defence. Another $250 million will be set aside to deal with fluctuating labour rates, increased project costs and any increases in foreign exchange rates or other costs. “By adding a sixth ship and stretching (the building) out, we’ve added two years of work,” Finn said Under the previous timetable the fifth AOPS would have been delivered by the end of 2022. Under the new schedule the fifth ship will now by delivered by the middle of 2023 and the sixth ship in the winter of 2024, Finn said. The first AOPS is now in the water and is expected to be officially delivered to the Royal Canadian Navy in summer 2019. The project was originally to build five AOPS and only proceed with a sixth if Irving could find savings and work within the existing budget. That didn’t happen.

The Royal Canadian Navy’s first Arctic and Offshore Patrol Ship (AOPS) at Irving Shipbuilding’s Halifax Shipyard on Friday, December 8, 2017. IRVING SHIPBUILDING INC. HANDOUT VIA CP

https://edmontonjournal.com/news/canada/construction-of-sixth-arctic-patrol-ship-at-irving-shipbuilding-to-cost-800m-double-the-cost-of-the-other-five/wcm/42de16ee-b44d-4041-86e1-c89476d6d838

 

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