The defence department and armed forces have responded with a joint statement after CTV reported on issues facing the Royal Canadian Navy’s multi-billion dollar procurement.

CTV News’ Mercedes Stephenson reported on internal documents suggesting the Canadian Surface Combatant program, which will replace aging frigates and destroyers, is at “very high risk” of running over budget, behind schedule and producing inadequate capabilities.

Sources later told CTV News that the project’s fixed budget -- combined with increasing costs and procurement delays -- mean the navy has likely already lost one or two of the promised 15 ships.

The joint statement issued Tuesday says the project is “currently in the definition phase, which means we are at the stage of firming up more of the detail, examining issues such as cost, schedule and requirements and identifying any risks early so that they can be mitigated.”

“At this stage of a project, it is not unusual for some risks to be assessed as high,” the statement goes on. “This may change over time as the project plan develops.”

The statement also says that “capacity challenges are common as projects ramp up.”

The procurement was initiated by the Conservatives in 2007.

The Liberals have promised that they would cancel the current F-35 procurement, and instead spend more money on the navy.