Deal with Shipbuilder Revealed
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Deal with Shipbuilder Revealed


The NZ government signed a contract with Australian shipbuilder Tenix for seven new ships without knowing the exact cost of maintaining them throughout their lifetimes. This move has saved the $NZ16 million ($A15 million) cost for missing a deadline set by Tenix. The government is facing legal action from a Dutch company which tendered unsuccessfully for the $NZ500 million ($A465.7 million) contract for the new ships. Schelde Marinebouw has laid a $NZ55 million ($A51.2 million) law suit against the Ministry of Defence and Tenix.

Under the contract Tenix will supply a multi-role vessel to replace the ageing steam frigate HMNZS Canterbury, two offshore patrol ships and four inshore patrol craft. It appears that the government decided not to carry out further work on "life cycle" costs and options for the fleet mix because it would have missed a deadline set by Tenix that would have upped the price. It was further indicated that the likely outcome of the additional work would be to confirm the fleet mix offered by Tenix. The benefits of progressing now and purchasing the proposed fleet appear to outweigh the benefits of commissioning further work and accepting the price increase.

The Sydney Morning Herald  

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