OTTAWA, June 10 (Reuters) - Canada's planned purchase of

88 Lockheed Martin F-35 fighters will cost at least 45%

more than initially estimated and the project is also threatened

by a pilot shortage, the country's top watchdog reported on

Tuesday.

Canada, seeking to replace its antiquated fleet of CF-18

jets, announced the C$19-billion ($13.89 billion) deal in

January 2023.

But Auditor General Karen Hogan said the final bill would be

at least C$27.7 billion and could go as high as C$33.2 billion,

citing factors such as foreign-exchange fluctuations and rising

facilities costs.

The report is another blow to a 15-year, trouble-plagued

attempt by successive administrations to replace the CF-18 jets,

some of which have been flying for more than 40 years.

Hogan, who reports to parliament, said the Defence Ministry

approach "had weaknesses, lack(ed) proactive measures to

minimize the impact of potential threats, and the project did

not have robust contingency plans."

A shortage of pilots that the Auditor General's Office

identified in 2018 is still a significant risk, she said. The

construction of special facilities for the jets is three years

behind schedule.

Prime Minister Mark Carney ordered a review in March of the

contract, in part because he said Canada relied too much on the

United States for security. Delivery of the jets is scheduled to

occur between 2026 and 2032.

In response, Defence Minister David McGuinty said Ottawa had

put in place a plan to identify all potential risks associated

with the deal.

"We will continue to work closely with our partners to

actively manage costs throughout the duration of this project,"

he said in a statement.

Canada announced plans to buy the U.S.-made F-35 in 2010 but

a switch in governments, rule changes for aircraft procurement,

as well as challenges from the pandemic triggered major delays.

($1 = 1.3680 Canadian dollars)