The government had initially budgeted $1.03B for the project when it was announced in 2018, but negotiations broke down over the cost being deemed too expensive
Defence Minister Anita Anand and Procurement Minister Helena Jaczek announced the sole-sourced deal to upgrade the military’s Cormorant helicopters late Thursday.Sign up to receive daily headline news from Ottawa Citizen, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc.
But negotiations between Ottawa and Leonardo, whose subsidiaries built the original helicopters, broke down in 2019 after the European company’s proposal was deemed too expensive.Asked about the cost increase, Defence Department spokeswoman Jessica Lamirande said negotiations were restarted in December 2021 “to attempt to reach an acceptable and affordable solution.”Article content
The two sides eventually decided that upgrading the existing fleet to Norway’s standards for its version of the Cormorant was the most cost-effective approach, she added.
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