Ship maker still on short list for multi-billion dollar contracts despite being in creditor protection since early 2010
July 22, 2011
by The Canadian Press
OTTAWA—The troubled Davie shipyard will soon find out if bureaucrats are going to give the go-ahead to its bid for a multi-billion dollar contract to build the next generation of Canada’s warships and coast guard vessels.
The shipbuilder has been in creditor protection since February 2010 but the firm’s money woes didn’t keep the federal government from naming it one of five companies on a short list for the shipbuilding jobs.
Two major contracts are up for grabs. One is for $25 billion to build about 20 large combat vessels for the navy. A second is for $8 billion to build smaller vessels for the coast guard and supply ships. Another $2 billion will be spent on other small craft and repair contracts.
Federal regulators are expected to come to a decision by early next week.