en.Wedoany.com Reported - Canada is expected to announce the preferred bidder for its submarine procurement program, valued at up to 60 trillion Korean won, ahead of the NATO summit next week. Hanwha Ocean is making a final push, emphasizing its collaboration with over 80 Canadian companies and the anticipated economic benefits, including the creation of approximately 25,000 jobs annually and a contribution of over $120 billion to GDP.
CTV, Canada's largest private broadcaster, reported on June 29 local time that Prime Minister Mark Carney is expected to announce the winning bidder before departing for Ankara, Turkey, on July 7 to attend the NATO summit. Carney had previously stated that a decision would be made around mid-year.
The Canadian Patrol Submarine Project (CPSP) aims to replace the aging Victoria-class submarines with up to 12 diesel-electric submarines. Including construction costs and maintenance, repair, and overhaul (MRO) expenses over 30 to 50 years after delivery, the total project value is estimated at up to 60 trillion Korean won.
MRO capability is expected to be a key factor in determining the winning bidder. According to evaluation criteria released by the Canadian Defence Investment Agency, MRO accounts for 50% of the evaluation weight, followed by submarine platform at 20%, financing at 15%, and strategic and economic partnerships at 15%. This weight distribution places greater emphasis on decades-long lifecycle support rather than the submarine's performance. The agency also instructed bidders that maximizing Canadian industrial participation would enhance the competitiveness of their proposals.
Hanwha Ocean is actively conducting local marketing, emphasizing that its KSS-III submarines are already in service. The company stated it could deliver the first submarine by 2032 and complete delivery of all 12 vessels by 2043.
Given the Canadian government's emphasis on contributions to domestic industry, Hanwha Ocean has expanded its collaboration with Canadian companies to enhance the economic impact of its proposal. According to an economic analysis by KPMG, if Hanwha Ocean wins the bid, it would create 503,000 person-years of employment across Canada between 2026 and 2044 (equivalent to approximately 25,000 jobs annually) and contribute over $120 billion to GDP. The report estimates 201,200 person-years of employment in Quebec, 88,000 in Alberta, 83,000 in Nova Scotia, 60,000 in Ontario, and 49,200 in British Columbia.
Germany's thyssenkrupp Marine Systems (tkms) has proposed the 212CD-class submarine for Canada. The company stated it could deliver four submarines by 2035, while emphasizing interoperability among NATO allies and its global MRO network spanning Europe, India, and Singapore.
The Canadian Department of National Defence has denied the possibility of splitting the contract between two bidders. Defence Minister David McGuinty stated that splitting the fleet would incur multiple additional costs, and maintaining and supporting two different fleets would create greater operational complexity.
Analysts point out that geopolitical considerations may also influence the final decision. Choosing Hanwha Ocean would signal Canada's stronger commitment to its Indo-Pacific strategy, while selecting thyssenkrupp Marine Systems would highlight traditional NATO alliance cohesion. The Canadian government plans to sign a final contract by 2028 after selecting the preferred bidder.
