Canada’s plan to replace its aging CF-18 fighter jets is facing significant cost increases and delays.
A new report from Auditor General Karen Hogan looks into the plan to upgrade the fleet to F-35 fighter jets.
First announced in 2022, the estimated cost to buy the 88 fighter jets was pegged at $19 billion.
Now, the AG said those costs have ballooned by almost 50 per cent to nearly $28 billion due to “foreign exchange fluctuations and rising facilities costs.”
Add to that at least another $5.5 billion for other essential infrastructure upgrades and advanced weapons.
“Maintaining a strong fighter-jet capability contributes to the safety and security of Canadians,” Hogan said in a news release.
“This is a large, multi-year project that requires active and ongoing management of risks and costs to ensure that the CF-35 fleet can be brought into service on time.”
The audit also found that the construction of two new facilities to support operations is at least three years behind schedule.
Officials said the project also faces other significant risks, including a potential shortage of qualified pilots — an issue first flagged by the auditor general in 2018.
Among the recommendations made by the auditor general are:
- National Defence should take immediate action to complete all plans and schedules for the project to bring the CF-35A aircraft into service and implement them in a timely manner.
- National Defence should review on at least an annual basis the project cost estimates and adjust them as needed to have timely and accurate information for decision making.
- When reporting publicly on the estimated cost of bringing the CF-35A aircraft into service, National Defence should include all needed elements required for achieving full operational capability.
