Government is building a $2.79 million pilot boat to replace the 22-year-old one they currently have.

The Ministry of Transport awarded the contract, which was tendered, to Gladden-Hearn Shipbuilders located in Somerset Massachusetts in December.

The new boat will be used for piloting ships in and out of Bermuda's waters as well as search and rescue operations.

A spokeswoman for the Ministry said: "The new vessel will replace the current lead pilot boat St. David which is no longer suitable for current and future quick response search and rescue duties.

"The St. David, currently at 22 years old, has exceeded its intended 18 years service."

This is the first new pilot/search and rescue boat the Department of Marine and Ports has purchased in two decades.

"The vessel is a high priority item for the department and the costs associated with repairing, modernising and re-powering the St. David to meet modern standards makes it more advantageous to purchase a new purpose built vessel with a 20-year service life," the spokeswoman added.