Australia Looks to France, Germany, Japan for $39 bln Submarine Contract
Australia has announced that it would formally invite France, Germany and Japan in the bidding process to build its new fleet of nine submarines in a project worth $39 billion.
Australian Prime Minister Tony Abbott said that there was Germany and France which are involved in a wider range of submarines and Japan which builds the best large conventional submarine in the world.
The process will take about 10 months before a winning bidder is selected, he said.
However, Swedish defence company SAAB, which built Australia's current Collins-class submarines, was excluded from the shortlist as it has not built a submarine in two decades.
The defence ministry will invite contenders to present options regarding design and construction, including possibilities of manufacturing them in Australia or abroad or both, and is to make a decision by the end of the year.
Australia also wants the submarines to be delivered on time, by the middle of 2020, when the navy will begin to phase out the current fleet. The current diesel and electric-powered Collins Class submarines are set to be retired from about 2026 onwards, with the project to replace them worth about Aus$50 billion (US$39 billion).
As Canberra seeks to replace its ageing Collins Class fleet, Defence Minister Kevin Andrews said all three countries had proven military design and build capabilities and were currently producing submarines.
"France, Germany and Japan have emerged as potential international partners," he said, adding that any future system's ability to work in sync with US military technology a "fundamental consideration."
Countries such as Vietnam and India are also expanding their submarine fleets as China seeks greater military clout in the Pacific. Prime Minister Tony Abbott, whose government trails in opinion polls, is trying to boost Australia's defense capability.
