Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Future Submarine costs under interrogation at Senate estimates

dcns fsp

Price estimates of Australia’s fleet of 12 Future Submarines for the next 60 years have come in at $100 billion, Senate estimates has heard.

Price estimates of Australia’s fleet of 12 Future Submarines for the next 60 years have come in at $100 billion, Senate estimates has heard.

Department of Defence officials told Senate estimates that the cost of the design and build of the Future Submarine project is estimated at $50 billion and an additional $50 billion has been estimated for the sustainment of the 12 vessels.

Advertisement
Advertisement

"The acquisition cost as quoted in the IIP for the Future Submarine Program is $50 billion on constant price basis – that is acquisition," Rear Admiral Greg Sammut, Head Future Submarine program, told Senate estimates.

"At this stage the estimated sustainment cost for the Future Submarine, and I caveat this by saying that we're still in the design process for the Future Submarine, so indeed many of the detailed costs of acquisition and sustainment will be determined during the design process through choices made.

"But at this point early estimation of the sustainment cost for the fleet are of the order of up to $50 billion on a constant price basis and that looks at sustainment out to the period of around 2080."

The breakdown costs of the design and the build are yet to be determined as the government prepares to enter into full contract with French shipbuilder and designer Naval Group.

"Those costs are being determined in greater detail as we complete preparations to enter the full contract for design and the build of the submarine," RADM Sammut said.

PROMOTED CONTENT

The first steel for the Australian submarines is expected to be cut by 2022 and the first vessels are due to enter service in the early 2030s. All 12 submarines will be built in Osborne, South Australia.

 

Future Submarine costs under interrogation at Senate estimates
DCNS-FSP-3.jpg
lawyersweekly logo

more from defence connect

Jan 21 2022
Royal Navy to support relief effort in Tonga
The UK has joined the Tsunami relief effort in Tonga, deploying a Royan Navy vessel to the embattled Pacific Island nation. ...
Jan 21 2022
Redefining the Army Reserve: An Israeli case study
Australia’s Reservists have played a phenomenal role in supporting the country during national emergencies. However, this has co...
Jan 20 2022
Beca enters strategic partnership with iDiC
The consultancy group has committed to facilitating the growth in work opportunities for the Indigenous community.  ...