Advertisement

Ottawa confirms $587-million deal for navy ship at Quebec’s Davie shipyard

The entrance of the Davie shipyard in Levis, Que., is shown on Oct. 13, 2006. THE CANADIAN PRESS/Jacques Boissinot

LEVIS, Que. – The Canadian government has given final approval to the Chantier Davie Shipyard in Quebec to provide a temporary supply ship for the navy.

Procurement Minister Judy Foote said in a statement today the contract, which is valued at up to $587 million, is the most viable choice to ensure the navy can properly supply its ships at sea.

Financial news and insights delivered to your email every Saturday.

READ MORE: N.S. closely watching shipbuilding costs

The shipyard plans to upgrade a civilian tanker to act as military replenishment ship while the navy’s long-delayed, joint support ships are built.

The Conservative government had arranged for Davie to retrofit the ship through a sole-source process rather than a competitive one after it was forced to retire its two, 45-year-old replenishment vessels.

READ MORE: Irving Shipyard development likely to go ahead despite budget concerns: Premier

Justin Trudeau’s Liberals had put the plan on hold earlier in November and received strong criticism from Quebec politicians for the decision because the ship had already been purchased and hundreds of workers hired.

Story continues below advertisement

The shipyard is located in Levis, across the St. Lawrence River from Quebec City.

Sponsored content

AdChoices