Defence spending needs to double to meet NATO target by 2032: PBO

On the same subject

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  September 23, 2021 | Local, Aerospace

  DSEI 2021: Lockheed Martin awaits verdicts on bids as it reiterates flight cost success for F-35

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  January 17, 2020 | Local, Aerospace

  Maxar selling MDA to NPC

  Maxar announced it signed a definitive agreement to sell its Canadian business, MDA, to Northern Private Capital (NPC). You can read the details in our press release. I would like to assure you that MDA is committed to continuously delivering the high-quality of service that our customers expect. Maxar and MDA will continue normal operations through the expected close of the transaction, which we believe will happen within 12 months, after the standard U.S. and Canadian regulatory approval. After the close, the MDA team will operate as a private, stand-alone company within NPC's portfolio, retaining its name and standing as the leading space and defence company in Canada. MDA will remain an important business partner and supplier to Maxar, and Maxar will be MDA's largest customer. Additionally, the companies will continue to sell each other's complementary satellite data. NPC is a Toronto-based investment firm led by John Risley and Andrew Lapham. It has created a Canadian investment fund to finance this transaction. NPC views Canada's renewed commitment to utilizing space for its civil and defence needs as a strong opportunity to bring MDA home to Canada. MDA will remain dedicated to its work for the Canadian government and as a merchant supplier to the international community. Maxar's leadership team and Board of Directors believe this transaction best positions Maxar for growth in the future. Once closed, it will enable Maxar to reduce its debt load and focus on substantial growth opportunities in its core markets of Earth Intelligence and Space Infrastructure. And likewise, MDA will be able to focus on capturing large, Canadian programs in the future, in addition to addressing commercial and export markets.

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  June 16, 2020 | Local, Naval

  Canada to pay $4.1B for Navy support ships in latest cost increase

  The Canadian Press OTTAWA — Canada's national shipbuilding plan was rocked by yet another cost increase on Monday as the federal government revealed it will pay $4.1 billion for two long-overdue support ships for the navy — an increase of $1.5 billion from initial estimates. The revelation came as Ottawa officially awarded a contract for the full construction of the two new Protecteur-class joint support ships to Vancouver's Seaspan shipyards, which has already started work on the first of the vessels. Seaspan was first tapped to build the two ships and several coast guard vessels in 2011, at which point the supply ships were expected to cost $2.6 billion. The figure was later revised to $3.4 billion before another $700 million was added Monday. The first of the support ships was to have been delivered by 2019. The government says it now doesn't expect the first ship before 2023, with the second due in 2025. Seaspan has been under contract to work on some parts of the first ship since June 2018. The Royal Canadian Navy has been without a full-time support ship since 2014 and is currently relying on a converted civilian vessel that is being leased from Quebec's Chantier Davie shipyard to fill the gap. That ship, the MV Asterix, was at the heart of the failed prosecution of retired vice-admiral Mark Norman. The Liberal government was playing down the cost increase to the support ships on Monday, with senior ministers touting the importance of the vessels to the Royal Canadian Navy and the jobs that the project is creating in Vancouver and elsewhere. "These new ships will provide a necessary capability for our Royal Canadian Navy, while providing significant economic benefits and jobs to Canadians, including thousands of jobs created or sustained," Defence Minister Harjit Sajjan said in a statement. Yet the cost increase is the latest to hit the shipbuilding plan, which has been plagued by delays and budget increases for years. The plan is intended to recapitalize the majority of Canada's naval and coast guard fleets. The entire plan to buy new warships to replace the navy's frigates and destroyers, several Arctic patrol vessels, a polar icebreaker and four science vessels for the Canadian Coast Guard in addition to the two support ships was pegged in 2011 at $35 billion. The warships alone are now expected to cost at least $65 billion while the rest of the projects have either seen similar budget increases or their budgets are under review. The delivery schedules for the projects have also been pushed back numerous times. Defence analyst David Perry of the Canadian Global Affairs Institute noted the new cost for the support ships is almost exactly how much Parliament's budget watchdog estimated following an analysis in 2013. The Conservative government at the time refuted the parliamentary budget officer's estimate, with then-public works minister Rona Ambrose saying appropriate safeguards had been put into place to protect taxpayers. "There's not a lot of detail in this today so it's hard to do a line by line," Perry said. "But superficially at least, the PBO's report from 2013 — which I recall being pooh-poohed pretty extensively — has held up pretty well." Ottawa has in recent years produced update cost estimates for most of the vessels being built through the federal shipbuilding plan. However, budgets for the polar icebreaker and an offshore science vessel for the coast guard are still under review. This report by The Canadian Press was first published June 15, 2020. https://www.kamloopsthisweek.com/news/canada-to-pay-4-1b-for-navy-support-ships-in-latest-cost-increase-1.24153254