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A project to provide Canada’s special forces with new armoured vehicles for the Arctic has been cancelled.

The government was supposed to buy 17 vehicles for the Canadian Special Operations Forces Command (CANSOFCOM), as well as consider whether to purchase five more at a later date.

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The project, expected to have cost around $60 million, would have seen the acquisition of what the military was calling a marginal terrain vehicle, or MTV.

Industry sources say funding issues are behind the decision to cancel the project. A similar project for the Canadian Army had been sidelined earlier.

Dan Blouin, a Department of National Defence spokesman, said in an email that “after a thorough examination of the MTV’s capabilities and limitations, training requirements, acquisition and sustainment costs, it was determined that it is not an essential requirement for CANSOFCOM.”

“As a result, it was decided to no longer pursue this procurement,” he said.