Canada Awards Contract for River-Class Destroyers
Today, the Honourable Bill Blair, Minister of National Defence, the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant, and the Honourable Darren Fisher, Minister of Veterans Affairs and Associate Minister of National Defence, announced the implementation contract award to Irving Shipbuilding Inc. (ISI) for the construction of the River-class destroyers (RCD).
Through Canada’s new defence policy, Our North, Strong and Free (ONSAF), the Government of Canada is providing the Royal Canadian Navy (RCN) with the modern ships it needs to support current and future operations while supporting jobs across Canada. The RCD will provide decisive combat power for operations at sea, and in support of joint-force operations ashore, and will support missions conducted as part of counter-piracy, counter-terrorism, intelligence and surveillance, interdiction and embargo, humanitarian assistance, research and rescue, and enforcement of law or sovereignty.
This modern fleet of warships will enable the RCN to respond to Canada’s defence and security commitments. The RCD will be able to perform a broad range of missions with North American Aerospace Defence Command (NORAD), Five Eyes nations, the North Atlantic Treaty Organization (NATO), coalition partners, and other Canadian government departments and agencies.
With an initial value of $8 billion (including taxes) intended to fund the first 6 years of construction, this contract supports the construction and delivery of the initial three ships as well as the development and delivery of necessary training, spares, and maintenance products required to operate and support the ships in service.
The RCD Initiative is the largest and most complex shipbuilding effort undertaken in Canada since the Second World War. It is at the core of the government’s commitment to revitalize Canada’s marine industry, establish a sovereign shipbuilding capability, and develop a skilled and experienced labour force to renew Canada’s fleets through the National Shipbuilding Strategy (NSS).
Following extensive analysis, the Government of Canada has now established the cost to build and deliver the first three ships at $22.2 billion (excluding taxes). This estimate includes the costs that will be paid to ISI through the implementation contract, as well as costs associated with the delivery of equipment, systems and ammunition that Canada will be acquiring to bring the first three ships into service.
The RCD Initiative will provide significant and long-standing investments into the Canadian economy. The RCD implementation contract is estimated to contribute $719.3 million annually to Canada’s gross domestic product (GDP) and create or maintain 5,250 jobs annually over the 2025-2039 period. In addition, consumer spending by associated employees is estimated to contribute $191 million annually in additional GDP and 1,545 additional jobs annually to the Canadian economy during the same 15-year period. This initiative will be especially significant to Atlantic Canada, creating more jobs and opportunities in the region that workers can count on.
As indicated in ONSAF, the Government of Canada continues to renew its relationship with Canada’s defence industry based on clarity, certainty and long-term partnership. Through the RCD Initiative, the Government of Canada is investing in Canada’s domestic shipbuilding industry while equipping the RCN with a fleet of modern and effective ships to support operations well into the future.
https://www.canada.ca/en/department-national-defence/news/2025/03/government-of-canada-announces-contract-award-for-the-construction-of-the-river-class-destroyers-for-the-royal-canadian-navy.html