Five shipbuilders to outline their opening pitch for the Australian navy’s new $10 billion frigate project

Shipbuilders have been given three weeks to outline their opening pitch for the Australian navy’s new $10 billion frigate project, triggering criticism the government risks rushing a selection amid a shroud of secrecy.

An “approach to market” requesting information for the general purpose frigate was sent to five foreign shipbuilders on Friday, asking them to provide details of how soon they could build the new warships, where they would build them and what they would cost.

German shipbuilder TKMS’ Meko A-200 frigate is under consideration for the Australian navy’s general purpose frigate.

The navy’s surface fleet review, released earlier this year, urged the government to order between seven and ideally 11 new general purpose frigates to replace the ageing Anzac-class frigates.

The frigates will be smaller than the Hunter-class frigates about to be built in Adelaide and carry at least 16 vertically launched missile cells.

The government is budgeting to spend between $7 billion and $10 billion on the project between now and 2033-34. The final cost hasn’t been disclosed.

Five shipbuilders are vying for the project: Mitsubishi Heavy Industries (Japan), Navantia (Spain), TKMS (Germany) and Koreans Hanwha Ocean and Hyundai. The government has vowed to pick the winning design next year, start construction in 2026, receive the first boat by 2029 and have it in service in 2030.

Friday’s tender request covered just the first three ships, which will be built overseas because of the need to rapidly re-arm the navy. A separate request covering how the companies plan to transfer technology to Australia and grow a supply chain to build the remaining ships in Perth will be released later.

Because of the need for a speedy acquisition, the government has ruled out making wholesale changes to the design. This means the cutting-edge CEA radars are not expected to be used on the new frigates, despite taxpayers last year spending almost $500 million to nationalise the company to keep the technology in Australian hands.

The bidders have been told to offer baseline versions of warships that are most closely in service with other countries, with the only changes that will be entertained are those required because of obsolete equipment.

One edge that TKMS and Navantia enjoy is that both companies have had designs built for the Australian navy in Australia. TKMS is offering an updated version of the Anzac-class frigate, which many in navy have experience of serving on fondly.

The Korean and Japanese shipbuilders have never built a ship for export to a foreign navy. However, Hanwha is circling Australian shipbuilder Austal while the Japanese government is emphasising the strategic value of a deal amid mutual concern over China.

Strategic Analysis Australia director Michael Shoebridge warned an accelerated timetable for acquiring the frigate was a worry given the complexity of the project and Defence’s track record.

“Rushing around at great speed to put shipbuilders under pressure might look impressive on ministerial briefing papers but it’s probably a path to a troubled program,” he said.

Mr Shoebridge also questioned how the government’s no changes edict applied to Australian health and safety standards. One issue he cited was the fire safety measures the navy mandated, such as the dimensions and locations of ladders, after the 1998 HMAS Westralia fire, when four sailors died onboard.

“These are not able to be blown off on a whim,” he said.

Asked what changes would be allowed, a Defence Department spokesman said: “The General Purpose Frigate program is now in an evaluation process and Defence will not comment while the process is being conducted to protect commercial, procurement and probity processes.”

Korean shipbuilders Hanwha Ocean and Hyundai Heavy Industries have their Daegu class frigate under consideration for the Australian navy’s general purpose frigate.

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