Defence Minister Marise Payne has announced the Air Warfare Destroyer project has been removed from the projects of concern list following continuing improvements in shipbuilding performance.
Following an independent review by Professor Don Winter and Dr John White and a review by the Australian National Audit Office, the project was placed on the projects of concern list in June 2014 due to increasing commercial, schedule and cost risks. The Air Warfare Destroyer Reform Program was then implemented, resulting in the ship's designer, Navantia, being contracted in December 2015 to provide shipbuilding management services to the project.
Defence Industry Minister Christopher Pyne said the long-term reform arrangements put in place by the government have put the Air Warfare Destroyer project back on track.
Minister for Defence Marise Payne said the recent commissioning of HMAS Hobart also demonstrates the program is now capable of producing highly potent Air Warfare Destroyers.
"HMAS Hobart has been commissioned into service, marking a step change in Navy’s ability to fight and win at sea," said Minister Payne.
"The two destroyers, Brisbane and Sydney, are both on track to be delivered against the reformed schedule and set to add to Navy’s capabilities."
The Air Warfare Destroyer Project joins the Collins Class Submarine project in coming off the projects of concern list in the past six months.