Air Warfare Destroyer project removed from Projects of Concern list

The Air Warfare Destroyer project has been removed from the Projects of Concern list following continuing improvements in shipbuilding performance.

This major milestone is a result of the implementation of the Turnbull Government’s reform program.

Following an independent review by Professor Don Winter and Dr John White and a review by the Australian National Audit Office, the project was placed on the Projects of Concern list in June 2014 due to increasing commercial, schedule and cost risks.

The Air Warfare Destroyer Reform Program resulted in Navantia being contracted in December 2015 to provide shipbuilding management services to the project.

Minister for Defence Industry, the Hon Christopher Pyne MP, said due to the long term reform arrangements put in place by the Turnbull Government, the Air Warfare Destroyer project is now back on track.

“The remediation of the Air Warfare Destroyer project shows the country is ready for the Turnbull Government’s continuous naval shipbuilding program, which will create thousands of jobs and secure the shipbuilding industry for future generations of Australians.”

Minister for Defence, Senator the Hon Marise Payne said the recent commissioning of HMAS Hobartdemonstrates the program is now capable of producing highly potent Air Warfare Destroyers.

“HMAS Hobart has been commissioned into service, marking a step change in Navy’s ability to fight and win at sea,” said Minister Payne.

“The two destroyers, Brisbane and Sydney, are both on track to be delivered against the reformed schedule and set to add to Navy’s capabilities.”

The Air Warfare Destroyer Project joins the Collins Class Submarine project in coming off the Projects of Concern list in the past six months.