Shipbuilding delays force Ottawa to spend $187M to extend lease on navy supply ship
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Ottawa is forking over another $187 million to extend the lease on a converted civilian ship that the navy is using as a supply vessel for another two years.
The federal government announced the amended deal with Quebec-based Chantier Davie shipbuilding today following more delays in the delivery of two permanent naval support ships.
Davie first started leasing the MV Asterix to the Royal Canadian Navy in January 2018 after a fire and excessive corrosion forced the military to retire its only two supply ships before permanent replacements were ready.
The new extension adds another two years to the current five-year, $691-million leasing agreement, with the government hoping that will allow enough time to get the first permanent support ship in the water.
