New Zealand navy frigate to leave Canada years after upgrade began & More News Here

The second of the nation’s two naval frigates is due to leave Canada, eight years after an upgrade challenge began.

The prices to upgrade the ship Te Mana, and earlier than it Te Kaha, have blown out to between $600 million and $700m, due partially to challenge administration errors.

Main contractor Lockheed Martin Canada and a subcontractor are mired in a protracted operating court docket battle.

Ministry of Defence stated that dispute has had no influence on the upgrades.

However, different delays had pushed the challenge again by greater than three years, even earlier than Covid-19 hit.

The deal was inked in 2014 at a funds of slightly below half a billion {dollars}, however in 2017 the newly elected Labour-led authorities was pressured to put in one other $140m, sparking an trade in Parliament:

“Cost overruns primarily occurred due to project management mistakes in estimating the cost of the installation of equipment and delays resolving the issue, which made an unacceptable situation worse,” the Defence Minister Ron Mark instructed Parliament on the finish of 2017.

“The previous government was first informed of cost pressures within the project in September 2016,” he added.

“That’s right. We said, ‘Go away’,” responded National’s erstwhile Defence Minister, Gerry Brownlee.

Te Kaha returned to New Zealand on the finish of 2020.

The NZDF annual report for 2020-21 beneath ‘Naval Combat’ says “no capability”, “0%”.

The upgrades had been to lengthen the vessels’ operational life to round 2030 – solely eight years away.

The Defence White Paper of 2010 stated they wanted upgrading by 2017 “to address obsolescence and to improve their defensive capability against contemporary air and surface threats”.

The upgrades had been “for a fixed firm price”, deputy secretary of functionality supply Mike Yardley, stated in a press release to RNZ on Monday.

“No additional prices have been incurred by the Crown.

“The only additional cost incurred has been to keep the small project team and ship’s crew in Canada for an additional three months while the acceptance trials were carried out, and this was provisioned for within the project contingency.”

The Defence Force’s annual assessment exhibits $35m went into the challenge final yr, and $5m the yr earlier than; RNZ has requested Defence to make clear if that is from inside the principle funds that expanded to $639m in 2017, or as well as to it.

Te Mana has been in Canada for 3 years

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