PETALING JAYA: It appears I spoke too soon. From the AFP and BSKL announcement page, it appears that BNS has gotten its LOA from the govt to build the SGPV/LCS or frigate. And more importantly the ceiling price has gone up to RM9 billion. Yes its the ceiling price, it can go lower but have you read any government contract that go lower?
When announced earlier this year, the ceiling price was RM6 billion and almost 11 months later its RM9 billion. I am not a betting man but I doubt that the ceiling price will stay and the delivery date (2017) will be met. AFP call the ships corvettes but the BNS release says frigate-class. As I mentioned before. I will call these ships the Laksamana-class frigates.
KUALA LUMPUR, Dec 17, 2011 (AFP) – A Malaysian shipbuilder says it has won a 9.0 billion ringgit ($2.8 billion) deal from Kuala Lumpur for six naval vessels developed by French manufacturer DCNS.
In a filing with the local bourse late Friday, Boustead Naval Shipyard said it was given a letter of award by the Malaysian defence ministry to build and deliver six “second generation patrol vessels littoral combat ships”.
“The delivery of the first of class ship is estimated in 2017 with follow on ships every six months thereafter,” it added.
Last week Boustead said it had been selected by Malaysia’s navy to build the corvettes, which DCNS says can stay at sea for three weeks and are designed to navigate coastal areas and island groups to fight piracy and patrol fisheries.
The vessels are 100 metres (330 feet) long and can each transport one EC275 helicopter made by Eurocopter, a subsidiary of EADS.
DCNS already had a relationship with Boustead through a joint venture in 2009 to maintain two diesel-propelled Scorpene submarines used by the Malaysian navy.
DCNS has previously sold 11 (wrong its six) frigates to Malaysia’s neighbour Singapore, five of which were built in the city-state. -AFP
BOUSTEAD HEAVY INDUSTRIES CORPORATION BHD (“BHIC” OR “THE COMPANY”) – RECEIPT OF LETTER OF AWARD TO UNDERTAKE THE CONSTRUCTION OF SIX (6) SECOND GENERATION PATROL VESSEL – LITTORAL COMBAT SHIPS (FRIGATE CLASS)
Announcement Details/Table Section :
Further to the announcement made on 18 October 2010, the Company wishes to inform that its associate company, Boustead Naval Shipyard Sdn. Bhd. had received the Letter of Award dated 16 December 2011 from the Ministry of Defence Malaysia for the Contract to design, construct, equip, install, commission, integrate, test and trials, and deliver six (6) units of “Second Generation Patrol Vessels Littoral Combat Ships (Frigate Class)” (“the Contract”). The Contract carries a ceiling of RM 9.0 billion, to be implemented over three (3) Malaysia Plans, 10, 11 and 12. The delivery of the First of Class ship is estimated in 2017 with follow on ships every 6 months thereafter.
The Contract will have no material effect on the earnings of the Company for the financial year ending 31 December 2011, but will contribute positively to the future earnings of BHIC Group.
None of the Directors nor Substantial Shareholders of the Company, or persons connected with them, has any interest, direct or indirect, in the Contract.
— Malaysian Defence
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View Comments (27)
not to complain but RMN needs new patrol assets now rather than 4 years away. the current platforms are being stretched and high operational tempo will only affect the availability.
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Yes they do but even if they buy, the Nakhoda Ragam, for example, it will take them at least a year for fitting out and commissioning, if they are lucky. The only way to get out of this log jam is to buy a ship or class of ships still under service and get them to transfer it directly, after a period of training of course, to RMN.
sorry to ask.... what is the spec of these ships? is this contact worth the money?
9 billon ringgit huh?i wonder wat are the armaments for these ships.It better damn worth it for d hefty price tag.hope to hear d complete specs of d LCS soon.
so who is the lucky dude who will benefit from the juicy commission ? Is the scum Razak Baginda who happens to be in M'sia recently, involved in this?
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None since the deal goes to BNS directly. That said some of the components of the ships will have to be procured from local agents
Incredible waste of money!
Let's compare:
Singapore purchased 6 Formidable (La Fayette) class frigates (2007-2009 delivery) in a "$750m deal (part of $1.6b 'Project Delta'); incl 5 produced in Singapore". (according to SIPRI)
Norway purchased 5 Nansen class frigates (2006-2009) as "part of NOK14-16 b ($1.5-2.5 b) deal (offsets 100% in 10 years incl production of components and production of 2 in Norway and Spanish order of NASAMS SAM systems and Penguin missiles)". (according to SIPRI)
Morocco purchased 3 SIGMA class frigates in a "EUR510 m deal; incl 2 SIGMA-9813 and 1 SIGMA-10513 version; delivery 2012-2014". (according to SIPRI)
Maybe we should make a deal with the PLAN to patrol our waters for us. It would be cheaper! Or maybe we could follow Singapore and host the US Navy.
http://www.defensenews.com/story.php?i=8594213&c=AME&s=SEA
so the deal is confirmed eh? are they gonna be in the same role with the rest of the RMN's FFL/FFG/FFH?
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yes
It not fair to compare with the RSN Invincible class. There are other cost that we dont really know. The 1.6 billion does not fore tell a whole lot of things.
if you divide the RM9 billion over 6 it will be RM1.5 billion each at current rate of RM3.2, that would be around USD480-500 million each. If you expect it to be armed with ESSM or Aster and other latest updated armament, then it should cost more than US300 million a piece.
saying that however, in general there is at least 20% "inefficiency" existed in malaysian procurement budget (if we are lucky), as such similar vessels could be built for USD400 million a piece or RM1.1-1.2 billion each.
Koxinga has a good point, especially with the 8 FAC (M) gonnba be retired soon (or has it been retired?). Spratly and Ambalat will remain the focal points but piracy problems and illigal human/weapon/drugs transit have to be look after also. the latter we have the MMEA but they are also under man. Plus we have to consider all these under the auspicious of budget cuts/stagnant for defense.
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With RM1 billion to be spend on the frigate annually for the next nine years unless the defence budget is increased dramatically we are going to see some funny things ...
waiting for singapore's 12 LCS announcement to make comparison.
only problem is that singapore's LCS might be bigger and more powerful, so it can only serve as indicator, not one to one comparison.
In March, 2000 the Singapore Ministry of Defense signed a contract for 1.6 billion dollar total cost with DCNS Company on "designing and construction" of six frigate.
(not includes equip, install, commission, integrate, test and trials)
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So for the hull and its design its around RM3.9 billion. But they did not announce the cost of the Govt Furnished Equipment and other stuff.
As for our frigate as usual practice, Boustead will buy source everything on behalf of the Govt, hence the total price is inclusive of the hull, design and other stuff.