Exclusive: Consortium offers Canada a deal on a new fleet of frigates that could save $32 billion

National Post ^ | November 30, 2017 | David Pugliese

[sukhoi-30mki]

OTTAWA — In a surprise twist in Canada’s shipbuilding saga, a foreign consortium is offering the country a way to build a fleet of warships at a guaranteed price of $30 billion — a potential savings of $32 billion.

Fincantieri of Italy and Naval Group of France — major forces in international shipbuilding — don’t believe the current $62-billion Canadian Surface Combatant program, already beset with delays and increasing costs, will be successful, industry sources told Postmedia.

Instead, the French and Italian governments have proposed that Canada’s chosen contractor, Halifax-based Irving Shipbuilding, build 15 ships based on the consortium’s FREMM frigate design, which is proven and is in operation with the French and Italian navies. They are offering to guarantee the cost of the ships at a fixed $30 billion.

The deal would use Canadian technology on board the ships, sources said, and include the transfer of technology to Canadian firms so they could be involved in future sales of FREMM vessels on the international market.

As well as the French and Italian navies, Morocco and Egypt operate FREMM ships. Australia is considering them for its new naval fleet, and they are seen as a serious contender in the competition to outfit the U.S. Navy with modern frigates.

Bids for the Surface Combatant program were to have been submitted by Thursday to Irving. The company has not responded to a request for comment, and it is not known how receptive it would be to the consortium’s proposal.

The Fincantieri-Naval Group gambit is risky, as federal bureaucrats are expected to oppose it. But the potential of $32 billion in savings for Canadian taxpayers will put pressure on the Liberal government to seriously consider the offer.

[sukhoi-30mki]

The FREMM design submited by Naval Group and Fincantieri for CSC is fitted with a 127mm main gun by Leonardo, a SEAFIRE radar by Thales, 2x RAM launchers by Raytheon, 2x NGDS decoy launchers and 2x RWS aft

Navy Recognition

[Crucial]

Looks like it’s made out of plastic.

[Mr. Blond]

That’s a 3D rendering. There’s a real pic in the article.

[cba123]

Industry sources pointed out that Canada had originally asked for proven ship designs, then at the last minute loosened that restriction to allow the Lockheed-BAE bid to qualify, since the Type 26 was at the time still on the drawing board. (Construction on the Type 26 frigate began in the summer, but the first ship for the Royal Navy is not yet completed.)

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Seems like important information, for American based readers.

I saw this in the article.

[littleharbour]

It won’t happen. Too many jobs would be lost in Canada. These mega projects are driven by politics, not fiscal reality.

[Bulwyf]

Liberals and Irving are very deep in bed with each other, so much so that one can’t survive without the other.