The Department of National Defence has awarded an $8-billion deal to Irving Shipbuilding to start building three new destroyers for the Royal Canadian Navy, the Liberal government said Saturday.
Defence Minister Bill Blair said the new destroyer project will be the largest and most complex shipbuilding effort undertaken in Canada since the Second World War. It will create more than 5,000 jobs in Halifax and across the country, Blair added.
The $8 billion pays for only the first six years of construction work on the three new ships, however.
Military planners now estimate the total cost to outfit and launch the three “River-class” destroyers will eventually hit $22.2 billion, the government announced.
“By investing in our own industry, Canadian workers are helping to build the fleet of the future, equipping the Navy and our members in uniform modern and versatile ships they need for Canada’s important contributions to peace and security at home, and abroad,” Blair said.
The first three ships will be named His Majesty’s Canadian Ships Fraser, Saint-Laurent and Mackenzie.
They are named after Canada’s most important waterways that reach the Pacific, Atlantic and Arctic oceans, the Department of National Defence said.
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Royal Canadian Navy Vice-Admiral Angus Topshee also praised the long-awaited warship contract.
“Today’s announcement is a major step forward in delivering the first three River-class Destroyers — these impressive ships will offer an incredible capacity to the Royal Canadian Navy and Canada, ensuring that we can defend our waters against any adversary and deliver frontline combat power anywhere in the world,” Topshee said in a statement.
The destroyer announcement was made on a weekend while Parliament is not in session.
It also comes on the eve of the Liberal party picking its next leader on Sunday amid speculation about a snap spring election that could be called by Mark Carney, the Liberal leadership contest frontrunner.
People surround a BAE Systems Type 26 Global Combat Ship at the Canadian Association of Defence and Security Industries CANSEC trade show in Ottawa in 2018. The new Canadian River-class destroyer will use this design.
Justin Tang / THE CANADIAN PRESS
The navy’s new River-class destroyer is based on the BAE Systems’ Type 26 warship design being built by the United Kingdom and a variant of which is being built for Australia as the Hunter Class Frigate.
Canada’s new warships will have enhanced underwater sensors, state-of-the-art radar and modern weapons, the military added. Part of the $8-billion tab includes the development and delivery of necessary training, spares, and maintenance products needed to support the ships in service.
No further details were provided, but the $22-billion estimate includes all the equipment, ammunition and weapons systems the three new ships will need.
The ships will include a military CH-148 Cyclone multi-role helicopter on deck.
The government also said that to help bring the new ships into service and support them throughout their missions, the Department of National Defence is building a new land-based testing facility on a portion of DND-owned land in Halifax.
The cost of that project was not disclosed.
Construction of the testing facility, whose cost was not disclosed, is expected to begin this summer and be completed in 2027.
Dirk Lesko, the president of Irving Shipbuilding Inc., said the formal go-ahead for the project marked a major milestone for his company and for Canada.
“This contract validates more than a decade of hard work by industry and government and provides stability for the hard-working men and women who design, build and maintain Canada’s surface fleet,” Lesko said.