Monday, July 4, 2011
Canada extends $35bn order deadline
Canada has extended the deadline for four shipyards to submit bids for a massive $35bn newbuilding program.
Irving Shipbuilding, Seaway Marine, Victoria Shipyards and Davie Yards now have until 21 July - an extra two weeks - to file their papers.
But the National Shipbuilding Procurement Strategy (NSPS) secretariat rejected a request for a two-month extension of the previous 7 July cut-off, saying it would "be unacceptable, as it would have significant and unacceptable impacts."
The government said the two-week extension is "the maximum flexibility available to Canada without incurring costs and/or causing unacceptable impact on the NSPS program." The two biggest candidates, Irving's Halifax Shipyards and Seaspan Marine’s Victoria, had opposed the extension.
Davie, which filed for bankruptcy last year, is relying on a takeover bid from Italy’s Fincantieri to allow it to meet the bidding criteria.
One winner will be awarded the $25bn combat vessel construction deal, while another will secure at least $8bn of non-combat ships, plus more coast guard orders to come, all over 30 years.
Losing shipyards may bid on an estimated $2bn in construction work for smaller, non-combat ships.
Published : July 4, 2011