The projected cost of Australia’s troubled Air Warfare Destroyer (AWD) program has risen to about $800 million more than its $8.5 billion budget, informed sources have told IHS-Jane’s.
This figure is nearly $500 million more than an overrun forecast by an Australian National Audit Office (ANAO) report in March, although the ANAO warned that the situation was likely to deteriorate significantly.
The first of the three 7,000 tonne Hobart class AWDs is not scheduled to be delivered to the Royal Australian Navy (RAN) until March 2016, with the second delivery scheduled for September 2017 and the third for March 2019.
The project, described by Defence Minister David Johnston as “a disgraceful mess”, was placed on the government’s Projects of Concern list in June following an independent review headed by former US Navy Secretary Don Winter.
An announcement is now believed to be imminent on the future structure of the AWD program and of ASC, the government-owned shipbuilder which together with systems integrator Raytheon Australia and the Department of Defence’s Defence Materiel Organisation (DMO) forms the AWD Alliance.
The announcement is believed likely to involve ramped-up technical support from Spanish ship designer Navantia, on whose modified F-104 platform the Hobart class is based, and the assumption by BAE Systems of managerial responsibility for the overall program.
It was also announced last week that BAE Systems would receive three more blocks in the build program.
Other possible changes include separating ASC’s shipbuilding and submarine roles, leaving an ASC submarine arm free to concentrate on support of the RAN’s six Collins class boats and winning a major role in construction of their replacements under Project Sea 1000.
A computer-generated image of an air warfare destroyer.
