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The Canadian Surface Combatant program is the largest single expenditure in Canadian government history. The project, being run by Irving Shipbuilding on the east coast, is to produce 15 warships to replace the navy’s fleet of Halifax-class frigates and the Iroquois-class destroyers the navy previously operated.

The Conservative government originally estimated the cost of the ships to be around $26 billion. The DND now states that its estimate is between $56 billion and $60 billion.

However, it could be years before the real cost to taxpayers for the mega-project is actually known as the project is just getting started.

The PBO report warned that any delays in building the first ship will be costly. A delay of one year, for instance, could increase costs by almost $2.2 billion, it added.

The federal government hopes to begin building the ships starting in the early 2020s.

Pat Finn, the head of procurement at DND, said the PBO estimates largely align with what the department figures as the cost of the program. He noted that unlike the PBO, the department does not consider tax in its cost figures. That is because those fees ultimately go back to the federal treasury.

But he also agreed with the PBO on the concern about added cost if the project is delayed. “That is a key one for us. It’s something we’re watching carefully,” said Finn, assistant deputy minister for materiel.

The CSC program is currently in the development phase. The government projects the acquisition phase to begin in the early 2020s with deliveries to begin in the mid-2020s. The delivery of the 15th ship, slated for the late 2040s, will mark the end of that project.