04/25/2012 02:34 EDT | Updated 06/25/2012 05:12 EDT

SNC-Lavalin-AECON joint venture wins $2.5 million contract at CFB Halifax

OTTAWA - Canada's Defence Department has awarded a joint venture between SNC-Lavalin and AECON Atlantic Group a $2.5 million contract to design accommodation and dining facilities at CFB Halifax.

The Montreal-based engineering giant (TSX:SNC) and its partner will design a new junior ranks housing tower along with dining and cooking facilities at the military base.

The total construction value of the project is estimated to be around $63.5 million, according to the request for proposals.

No details about when the work will be completed was immediately available.

Defence Minister Peter MacKay says the project will help sustain the economy in the community and region.

The federal government says the contract was awarded following an "open, fair, and transparent competition process."