The feds awarded Irving Shipbuilding a $500-million contract Thursday to maintain the navy’s Halifax-class frigates.
“This initial five-year contract guarantees a minimum of three frigates for the shipyard, with work planned to begin in the early 2020s,” said a news release from Public Services and Procurement Canada.
“The contract is expected to rise in value as additional work packages are added.”
This contract is expected to result in up to 400 jobs at the Halifax Shipyard, said the release.
Thursday’s announcement follows news last month that Ottawa awarded two maintenance contracts totalling $1 billion to two Canadian shipyards.
The federal government awarded those contracts to Quebec’s Chantier Davie and B.C.’s Seaspan Victoria Shipyards Ltd. to carry out maintenance work on Canadian warships.
The contracts are part of work worth more than $7.5 billion for the navy’s 12 recently modernized frigates that will provide ongoing maintenance until they are retired in the early 2040s.
The fleet of Canadian surface combatants being constructed by Irving will replace both the Halifax-class frigates and the retired Iroquois-class destroyers.
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