HALIFAX, Nova Scotia: The Minister of National Defence and Minister for the Atlantic Gateway, the Honourable Peter MacKay, and the Minister of Industry, the Honourable Tony Clement today announced that a contract valued at approximately $1.2 billion has been awarded to the Boeing Company for the purchase of 15 Chinook helicopters for the Canadian Forces.
In addition to purchasing 15 helicopters, this project will involve a 20-years in-service support and maintenance contract valued at approximately $2.2 billion, with an option to extend the contract to the life expectancy of the aircraft.
“This contract ensures the Canadian Forces are a first class, modern, flexible force capable of defending Canada and Canadian interests at home and abroad,” said Minister MacKay. “These helicopters are key to keeping Canadians safe and secure by giving our military a robust ability to operate in remote and isolated areas and respond to disasters or missions both at home and abroad.”
According to an independent analysis, this acquisition contract is expected to generate benefits for local economies and will provide approximately 5,500 jobs and an opportunity for up to 15,000 indirect jobs for Canadians across the country.
“The Government of Canada’s Industrial and Regional Benefits Policy is in place to ensure that prime contractors generate long-term and significant economic activity in Canada,” said Minister Clement. “Our Government is committed to generating the greatest amount of economic benefit for Canadian industry and the economy at large”
As a result of the industrial and regional benefits requirements within the CH-147F project contract, Boeing has committed to re-invest the full contract amount into the Canadian economy, creating jobs and stimulating regional markets. As part of this commitment, Boeing has awarded a contract to IMP Aerospace to manufacture key components of Boeing’s Chinook cargo helicopters, including the 15 aircraft being purchased by the Government of Canada.
The purchase of the CH-147F Chinooks gives the Canadian Forces a new ability to reach remote locations in a wider range of geographic areas and challenging environments inaccessible by land transport or fixed-wing aircraft. These helicopters are invaluable assets in responding to natural disasters and while deployed anywhere in the world.
Delivery of the first aircraft is expected in July 2013.
As the contract was negotiated in US dollars, the Canadian dollar value of the purchase of these helicopters was calculated using the August 5, 2009, Bank of Canada exchange rate of 1.00USD = $1.072CAN.