After much speculation about the cost of the Type 26, we now have a ballaprk figure. Around £12B for 13 ships. Not in current, but future pounds.
LONDON — Until last week the likely cost of the Royal Navy’s new Type 26 frigate was a closely held number known only to a few at the Ministry of Defence and shipbuilder BAE Systems.
That changed Sept 16 when a top military officer gave the first hint of the likely huge cost of the Type 26 program during a speech to an audience at the DSEI defense exhibition in London.
Defense News wasn’t present at the speech but one industry official who was said the number popped out when Rear Adm Alex Burton, the Assistant Chief of Naval Staff, (Ships) was comparing the magnitude of the Type 26 to other programs.
Burton put a price tag of £12 billion on what is currently a 13 frigate program aimed at replacing the Royal Navy’s aging Type 23 anti-submarine/general purpose fleet starting 2023 when HMS Argyll is retired.
The figure is not the exact cost for the program but was meant to give the audience a feel for the size of the program versus other projects, said a MoD source.
The figure had been rounded up by Burton and the true cost was closer to £11.5 billion, they said.
The source said the figure was an outturn price for a program expected to run into the 2030’s and not the cost at current prices.
The MoD doesn't dispute Burton used the figure.
Asked to give more details. a MoD spokeswoman said: “The MoD has adopted an incremental approach to financial commitment on the Type 26 Global Combat Ship program. The program entered its demonstration phase in April 2015. The program’s cost will be subject to future investment decisions.”
Building the Type 26 is part of an expected huge upcoming investment in Royal Navy platforms.
In the 10-year equipment program rolled out last year, the MoD said it would spend £18.2 billion buying and maintaining surface ships over the next decade and around £40 billion on submarines.
The total 10 year equipment and support plan is costed at £163 billion. ...