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Seaspan, Ottawa reach deal on 3 ships Budget for Coast Guard vessels almost 3x original estimate JANE SEYD jseyd@nsnews.com
North Vancouver’s Seaspan Shipyards has reached an agreement in principle with the federal government to build the first three offshore
fisheries/Coast Guard vessels under Ottawa’s national shipbuilding program. The agreement, announced Friday, sets a “target” price of $400 million for the three offshore fisheries science
vessels and a “ceiling” of $544 million, said senior government officials. The total budget to put the three vessels into service — including training, project management costs and contingencies — is up to $687 million, almost three times the project’s originally estimated cost of $244 million. That’s likely one reason
for protracted contract negotiations between Seaspan and Ottawa leading up to Friday’s agreement, which will form the basis of a construction contract. Officials said Friday the original $244 million estimate, developed in 2004, didn’t contain provision for inflation, project management, engineering or design costs
and didn’t include enough contingency. Before agreeing to the new figures, the federal government had Seaspan’s estimates vetted by an expert third party, which found them “fair and reasonable,” said officials. Under the terms of the contract, the shipyard will receive extra incentive payments if the three ships come in under the $400-
million target budget or are delivered ahead of schedule. The government will not pay more than the ceiling price of the contract, even if costs run higher. Government officials said Ottawa will have staff on site at the North Vancouver shipyard while the vessels SeeWork page 5
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District to name new ’hoods
MARIA SPITALE-LEISK mspitale-leisk@nsnews.com
EAGLE EYES *<ZR% ([.S<' 4+"ZR<' '%"6aR%' #Z.Ta% 4R%.Ra <R6 OaTaR LZS -"% %[a QRZ'[ZR] %."8[a' .R <R a<]Ta '8"T-%")a %. :a ["R] ZR %[a H.)%[ #<R8."ga) 2<%[.TZ8 '8[..T5' <%)Z"S J.R6<C> 1a'Z]Ra6 :C HZ']<5< <)%Z'% JZVa 1<R]aTZ@ %[a 2a6<) 3Z)6 <)%f.)V f<' 8"%@ -<ZR%a6 <R6 <''aS:Ta6 :C '%"6aR%'> DOF(F MIKE WAKEFIELD
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What’s in a name? That which we call Seylynn or Lower Capilano might soon be known as Lynn Bridges or Lions Gate Village. District council, tasked with christening two new communities — Lower Capilano Marine Village Centre and Lower Lynn Town Centre — with new names, explored the age-old question at a Committee of the Whole meeting May 25. Capilano Village is the name district staff are recommending for the phased development slated for west of Capilano Road between Fullerton Avenue and Curling Road. See Bridge page 9
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