Tenix ready to roll on $500m Navy ship project

By KEVIN TAYLOR

A seven-ship fleet to boost the Royal New Zealand Navy's capabilities will be delivered over the next three years, with work starting almost immediately.

Government ministers yesterday attended a ceremony at Parliament with officials from Australian shipbuilder Tenix to mark last week's signing of the contract for the $500 million Project Protector.

But last night a rival ship-builder and unsuccessful tenderer, the Dutch firm Schelde Marinebouw announced it was seeking an urgent High Court hearing to stop the contract proceeding.

Schelde New Zealand spokesman Bill MacGregor said the company had requested an urgent hearing so a decision on its claim could be made rapidly.

Schelde filed papers in the High Court last week alleging that the Defence Ministry's tender processing was fatally flawed and seeking $55 million in damages and costs.

At the ceremony, Tenix group managing director Paul Salteri said the value of the work to New Zealand would be more than $200 million.

Project work had already been given to about 100 New Zealand firms.

One 8870-tonne multi-role vessel, two 1600-tonne offshore patrol vessels and four 340-tonne inshore patrol ships will be built.

Tenix, which owns a shipyard in Whangarei, will build all the inshore patrol vessels and some of the modules for the offshore patrol vessels there.

The remaining parts will be built at Williamstown, Melbourne.

The construction of the multi-role vessel will be subcontracted to Merwede in the Netherlands.

Finance Minister Michael Cullen said the project would have economic benefits to New Zealand industry and the economy, and the Government was getting value for money.

Delivery dates

One 8870-tonne multi-role vessel: December 2006.

Two 1600-tonne offshore patrol vessels: May and November 2007.

Four 340-tonne Inshore patrol vessels: February, June, and September 2007 and January 2008.

Tenix