The UPHOLDER project was recenlty approved by the Treasury Board at a total of $750 million current year 1998-99. The project consist of $610 million current year 1998-99, for the U.K. package—submarines, trainers, technical data, crew training, and initial spares and $140 million current year 1998-99 for other project costs—essential Canadian modifications, infrastructure, including the repatriation of the trainers, project management and contingency.
The cost of the new communications systems, shore facilities—trainers—and modifications to meet Canadian standards are budgeted for within the $140 million, current year 1998-99, envelope for other project costs. Precise costs for these requirements will not be known until detailed definition and contract negotiations are completed.
The installation of an air independent propulsion system is not part of the UPHOLDER project. AIP is currently at the “proof of concept” stage at Ballard Power Systems in Vancouver. To date, the Department of National Defence's investment in the research and development amounts to approximately $8 million.
The full development of a submarine AIP system, including its installation in the four submarines, is estimated at potentially several hundred million dollars over an 18-year period. As the estimate is for planning purposes only, and will have to be carefully evaluated for affordability within the defence services program, the estimate cannot de released publicly at this time.
Question No. 127—