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Billion-dollar ship deal may be decided Wednesday

NORTH Vancouver shipbuilders are holding their breath in advance of a federal announcement expected as early as Wednesday on $35-billion in navy shipbuilding contracts.

NORTH Vancouver shipbuilders are holding their breath in advance of a federal announcement expected as early as Wednesday on $35-billion in navy shipbuilding contracts.

Seaspan Marine is one of three contenders for two massive contracts, along with Irving Shipbuilders in Halifax and Davie Shipyard in Quebec.

While most of those close to the bidding process say word will come Wednesday, its possible it will be later in the week. My phone has been ringing off the hook, said Kelly Francis, spokeswoman for Seaspan Marine Corp, which owns both Vancouver and Victoria shipyards and led the West Coast bid.

The biggest plum is a $25-billion contract to build combat vessels over several decades. Seaspan and Irving are facing off over that.

All three shipyards are also competing for an $8-billion deal to build non-military ships, including an Arctic icebreaker. A smaller $2-billion contract to build more minor government vessels is also up for grabs.

The two bigger contracts are considered make-or-break for the local shipbuilding industry.

Whatever regions are picked as centres of excellence, theyre going to have a future in shipbuilding, said George MacPherson, president of the B.C. Shipyard General Workers Federation. The region that is knocked out is not going to have a future in shipbuilding.

The larger combat vessel contract would create more than 8,000 jobs at the peak of the project and an average of close to 6,000 jobs over 30 years.

The project would start with between $100-million to $190-million in construction at both North Vancouver and Esquimalt shipyards to get ready for building the vessels.

That would pave the way for other projects too like construction of new ferries in the future.

This is very big, said MacPherson, about the economic impact of the decision. It makes the Olympics look small in comparison.

The provincial government has pledged $40 million, including $35 million in labour tax credits, towards the B.C. shipbuilders' bid.

Speculation was swirling this week around which shipyards will be awarded the two largest deals.

Both Seaspan and Irving are reported to have spent significant amounts of money on their respective bids and on lobbying efforts in Ottawa.

Federal government officials have said repeatedly that bureaucrats have judged bids on their merits and that politics have not entered into the decision.

McPherson said that seems unlikely. Ive been at this a long time, he said. Theres always some politics in it, no matter what they tell you theyre going to do.

Seaspan officials wont be making any further comments until after the decision is announced, said Francis on Tuesday.

Federal officials were keeping mum in the lead up to the announcement. Even those heading the shipyards arent expected to find out the news until a short time before it is made public.

Politicians are expected to avoid being any significant part of the announcement despite its massive impact out of a desire to avoid a hostile reaction from whichever region does not win one of the two main contracts.