Transport Minister Chrystia Freeland told MPs Friday she is “dismayed” by a $1 billion federal loan for BC Ferries’ purchase of four new electric-diesel ships from a Chinese shipbuilder – but did not call for the contract’s cancellation.

The House of Commons transport committee launched a study of the Canada Infrastructure Bank loan today.

BC Ferries announced in June that it had hired China Merchants Industry Weihai Shipyards to build the new ships after a five-year procurement process that did not include a Canadian bid.

The Canada Infrastructure Bank contributed $1 billion to the deal and said in June that the new ferries “wouldn’t likely be purchased” without this financing.

In her opening remarks before the committee Friday, Freeland said she was troubled by the planned purchas

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