Ottawa chips in up to $12M for bailout of Bas-Caraquet shipyard

Ottawa will kick in between $8 and $12 million to help the Gallant government bail out a troubled shipyard in Bas-Caraquet.

The money will help cover the $25-million expense of finishing the three phases of upgrades at the New Brunswick Naval Centre, Premier Brian Gallant announced Friday.

Gallant also said the province will negotiate an "improved" agreement with Quebec-based Groupe Ocan for the construction and lease of a $13-million floating drydock.

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Documents obtained through a right-to-information request earlier this month showed Groupe Ocan received generous terms under its initial 2014 deal with the naval centre and the province.

Gallant said thanks to Ottawa's contribution, the province will take ownership of the shipyard within weeks and will start the process of paying unpaid suppliers immediately.