TRAN - August 1, 2025 - Canada Infrastructure Bank’s financing of new vessels for BC Ferries

28. PIC – Chantier Davie Project Delays

SUBJECT: STATUS OF THE NEW FERRIES PROCUREMENT

LOCATION: Wood Islands (PEI), Caribou (NS), Magdalen Islands (QC) and Souris (PEI)

ISSUE/SOURCE: Chantier Davie project delays

Date: July 2025

SUGGESTED RESPONSES

  • In November 2019, the Government of Canada awarded an initial contract to Chantier Davie for design work for the two new ferries to replace the former MV Holiday Island and former MV Madeleine.
  • Phase 1 of the project for the MV Holiday Island II was largely completed in July 2025. An initial study to optimize the propulsion system was not fully completed and this work is expected to be completed as part of the next design phase.
  • A contract for the next Basic Design phase of the project has not yet been issued. Chantier Davie has been informed that Transport Canada requires new authorities before proceeding. A decision is expected in Fall 2025.
  • [ Redacted ] The timing of the new ferry is still being discussed within the context of the Government’s overall program of work and the timelines remain to be determined.
  • Service reliability is not expected to be affected, as the MV Northumberland and MV Madeleine II are in place as interim vessels until the new ferries are ready.

IF PRESSED

Overall Design Process

  • [ Redacted ]

Delivery of MV Holiday Island II

  • The vessel is not expected to be ready until sometime in 2031.

Reason for MV Jean-Lapierre Delay)

  • [ Redacted ]

Project Costs to Date)

  • The total cost of Phase 1 is expected to be in the range of $40M. As of the end of June 2025, Chantier Davie has received approximately $31.8M in project funding.

BACKGROUND INFORMATION

  • Budget 2019 announced that the Government of Canada would procure two ferries to replace the former MV Holiday Island and former MV Madeleine. Key design considerations for the new vessels include reducing greenhouse gas (GHG) emissions, air pollutants and underwater noise to support the Government’s Climate Action Plan.
  • In November 2019, the Government awarded an initial ancillary contract to Chantier Davie to establish a Project Management Office and to initiate key engineering studies. The contract was entered into under Public Services and Procurement Canada (PSPC) contracting authorities.
  • The project is being managed according to a gated approach [ Redacted ]
  • [ Redacted ]
  • [ Redacted ]
  • [ Redacted ]
  • Phase 1 of the project was completed in mid-July 2025. Key work completed under Phase 1 includes:
    • Concept Design for the MV Holiday Island II;
    • engineering studies related to the propulsion system, onboard energy storage system, underwater radiated noise, maneuverability, feasibility of installing a hydrogen fuel cell, and vessel weight study;
    • Preliminary Design for the MV Holiday Island II;
    • cost estimate to build the vessel; and
    • initial propulsion optimization study with further to be completed as part of the next design phase.
  • [ Redacted ]
  • [ Redacted ]
    • [ Redacted ]
    • [ Redacted ]
  • [ Redacted ]
  • The total cost of Phase 1 was approximately $40M. As of the end of June 2025, $31.8M was provided to Davie and $7.8M was provided to Transport Canada’s external advisors – a joint venture of Lengkeek Vessel Engineering – Kund E Hansen. The remaining funding was for contracting support by PSPC as well as capitalized employee salaries.
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