Feb 2006 HMCS Athabaskan. Photo of the Standing NATO Maritime Group 1. The ship carries a crew of some 300 all ranks including a flight crew (2 Sea King helicopters) and maintenance technicians Photo Credit: MCpl Charles Barber, Staff Photographer SNMG1 (NATO)
David Pugliese, Ottawa Citizen: Cost of Canadian Surface Combatant put at more than $61 billion – PBO study
Canada’s new fleet of warships will cost almost $62 billion, according to a new study by the Parliamentary Budget Officer.
The original budget for the CSC program was $26.2 billion, or $1.7 billion per ship for 15 ships. The vessels are to replace the current Halifax-class frigates and the Iroquois-class destroyers.
But Jean-Denis Fréchette , the Parliamentary Budget Officer, estimates that the program will cost $61.82 billion, or $4.1 billion per ship for 15 ships. Therefore, it is estimated the ships will cost roughly 2.4 times more than originally budgeted, the PBO added in a report released Thursday.
This estimate includes costs resulting from development, production, spare parts, ammunition, training, government program management and upgrades to existing facilities. It does not include costs associated with the operation, maintenance and mid-life refurbishment of the ships, other than the spare parts that will be purchased when the ships are built, the PBO noted.
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WNU Editor: Even the low-ball number of $1.7 billion (CAD)/$1.26 billion (USD) per ship seems ridiculously high. But 15 ships for a total price of $62 billion (CAD)/$46 billion (USD) or (the low-ball number) of $26.2 billion (CAD)/$19.20 billion( USD).... even taking the low-ball number I cannot help but feel that something is wrong.