‘Stupid games': Government keeps cost secret after Japan wins lucrative warships deal
The government announced on Tuesday that the Japanese firm had defeated German rival TKMS in a decision that has been widely applauded by the defence community.
Overcoming concerns about a lack of export experience, Mitsubishi Heavy Industries won favour with its ultra-modern Mogami frigate, which was found to be a more advanced warship than German firm TKMS's Meko A-200 vessel.
Japanese officials have also said the United States backed its proposal as a way to boost collaboration among key Indo-Pacific partners.
TKMS sought to capitalise on the fact that it has sold ships to navies around the world, while modern Japan has no experience exporting warships, but this argument failed to overcome the perceived advantages of the Mogami.
Under the general purpose frigate program, Australia will acquire 11 upgraded Mogami-class frigates to replace the ageing Anzac-class frigates, which are regarded as the workhorse vessels of the Australian navy and are being gradually retired.
Recent navy projects have been riddled with cost blow-outs and delays, leading to the government's announcement last year that it would slash the number of Hunter-class frigates and offshore patrol vessels it planned to purchase in favour of ships with more firepower. An audit office report released in June blasted Defence Department's handling of maintenance for the navy's landing helicopter docks, finding they were beset by defects and failing to meet their availability targets.
The government's estimate that the AUKUS submarine program will cost up to $368 billion has fuelled critics' calls for Australia to seek a cheaper option for its future submarine fleet.
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