Government will sign a contract today with the Massachusetts-based firm that has been chosen to build Bermuda's first two new $2.5 million ferries.

A Government spokesman announced yesterday that Transport Minister Ewart Brown will sign the contract with Gladding-Hearn Duclos Corporation at 12.30 p.m. at the Cabinet Office.

The contract offers an option for the company to build two more ferries for the Island after the first two vessels are evaluated and requires Gladding-Hearn to participate with the Transport Ministry in a joint marketing programme.

The first boat is scheduled for delivery toward the end of September, 2001.

The second boat is set to follow by the end of January, 2002.

After an evaluation period, plans call for the final two boats to be delivered later in 2002.

Gladding-Hearn Duclos edged out Austral USA and Derecktor Shipyards for the contract.

Dr. Brown said: "This is an important day for the Ministry of Transport. We are pleased to have selected a suitable builder for our new ferry boats and we are confident that our relationship with Gladding-Hearn throughout this process will be a good one.

"The new ferries will signal a new trend in transportation in Bermuda.

"The improved new ferry system will feature more frequent service, greater comfort and will offer commuters a pleasant option to using their car,'' he said. "It will also improve transport options for our visitors.

"The marketing of the new ferry system will be an important element of the project and we are excited that Gladding-Hearn will be a partner with us in promoting the new ferry service.'' The new system will include the new 82-foot-long bow loading catamaran vessels, improved docks and new ferry stops at Rockaway, Southampton and St.

George's.