sa国际传媒's new Arctic patrol ships will cost more to maintain if National Defence signs a long-term service contract for the mini-icebreakers while the boats are under construction. The ships are at least two years behind schedule, and could fall further behind if contract talks with the Irving shipyard building them hit a snag.
An internal briefing for Julian Fantino, former associate defence minister, noted last fall the project's financial uncertainty, including the price tag for building up to eight warships.
"Actual ship construction costs (are) unknown until negotiations are concluded," said the September 2011 slide presentation.
The presentation and associated documents were obtained by The Canadian Press under the access to information law.
The ships, announced in 2007, were projected to cost $3.1 billion to build and $4.3 billion to maintain over their 25-year life.
A revised schedule in the briefing says the first ship now is to be delivered in 2015, two years late, but the date was predicated on a contract in place with the shipyard by last spring.
Other internal documents show delay caused by the project's inclusion in Ottawa's larger shipbuilding strategy has driven up construction costs by a minimum of $40 million.
National Defence was prepared to go to Treasury Board last fall to ask for a more project money just for the definition phase, the documents show.
The presentation also shows that a plan to "separately compete" the multibillion-dollar maintenance contract "after the ships are in build" could drive up costs. Among other things, the delay in a support contract would "increase the cost of ownership."
The report doesn't speculate on what the increased cost might be.
