Australia To Build New Frigates And Patrol Boats For $65 Billion

Australia on Tuesday announced a US $65 billion shipbuilding package to construct new frigates and patrol boats indigenously.

The decision on an international supplier for replacement submarines will be made in coming months. "Previous Australian governments have announced that individual ships or classes of ships will be built here in Australia," Prime Minister Tony Abbott said at a press conference.

"What we are announcing today is basically a fleet builds here in Australia, centered on (South Australia)," he said.

Abbott did not provide details about the international supplier to design and build next generation of submarines that are to replace its ageing diesel and electric-powered Collins Class fleet, which are set to be retired from about 2026 onwards.

"What we have asked the various potential partners to give us is a price for a domestic build, a hybrid build and offshore build," Abbott said.

"Based on what comes back to us in the coming months, we`ll make a decision."

The shipbuilding package will bring forward the "Future Frigate" program to replace the current ANZAC class frigates to 2020. The construction of offshore patrol vessels to replace the Armidale class has also been moved forward to 2018.

The total cost was expected to reach about Aus$40 billion (US $65 billion), Abbott said.

Defense Minister Kevin Andrews said the establishment of a "continuous ship-build" domestically reflected the view that Australia`s future naval capability "is at the centerpiece of our strategic concerns and will be at the centerpiece of the forthcoming White Paper on Defense".

The frigates would be the navy`s workhorses over the next few decades, the navy`s Vice Admiral Tim Barrett added at the same press conference.