ANNOUNCED AS TEMPORARYNo
Bailout (capital injection or equity participation)
The provincial government of News Brunswick announced on April 16, 2016 that it proposes an arrangement by which it would assume ownership and management of the New Brunswick Naval Centre in Bas-Caraquet. The proposal consists of a two-phased approach for revival of the shipyard.
Phase one consists of assuming ownership of the centre for $1 and completing the original $10-million infrastructure project to ensure its survival.
The second phase of the project for consideration by the government calls for renovating and repairing the u-wharf, slip and travel lift as well as completing the dry dock. Phase two is estimated at $28 million. The provincial government will seek partnership with the federal government to complete phase two.
Health Minister Victor Boudreau, who is also minister responsible for the Regional Development Corporation, announced that, 'Through the Northern New Brunswick Economic Development and Innovation Fund, the province is willing to invest further funds to complete the project, providing all conditions presented to the centre's board of directors are met and the federal government provides financial support.'
The shipyard is currently operated as a private, non-profit entity incorporated by Caraquet and neighbouring Bas-Caraquet and, according to press accounts, has "been crippled by financial problems since it was unable to secure a $4-million loan for its contribution to a $10-million infrastructure update."
Subsequent reporting indicated that the federal government will provide between $8 and $12 million to support the bail-out. "The money will help cover the $25-million expense of finishing the three phases of upgrades at the New Brunswick Naval Centre, according to a June 24, 2016 CBC News report. The province will negotiate an improved agreement with Quebec-based Groupe Océan for the construction and lease of a $13-million floating drydock.
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