Austal Limited (Austal) (ASX:ASB) is pleased to announce it has been awarded preferred tenderer status by the Commonwealth of Australia for the Pacific Patrol Boats Replacement (PPBR) Project.
The PPBR project involves the construction of up to 21 steel-hulled patrol vessels and through life sustainment over 30 years in a total Government expenditure of up to $900 million. Austal’s share of the PPBR program will include the construction of the vessels and short to medium term maintenance components of the project.
Austal will now work with the Commonwealth of Australia to complete documentation and finalise the contract over the coming weeks. Full details will be provided to the market when the contract is finalised.
Austal plans to construct the Pacific Patrol Boats in its shipyard in Henderson, WA, with through-life support to be performed at Austal’s existing facility in Cairns, Queensland. The vessels will replace the existing Pacific Patrol Boat fleet, which is approaching the end of its service life, and will assist Pacific Island countries to continue to take an active part in securing their own extensive Exclusive Economic Zones.
Austal Chief Executive Officer David Singleton said: “I am delighted that we have been selected as preferred tenderer, adding to our long history of constructing patrol boats at our shipyard in Henderson, Western Australia.
“Austal has delivered Australia’s entire border patrol capability – comprising 30 vessels delivered over the past 17 years – and we look forward to extending this by constructing and servicing vessels that will be used by many of our neighbours in the South Pacific.
“Construction of the Pacific Patrol Boats also extends Austal’s shipbuilding capability into steel-hulled vessels, which will be important for the future construction of Offshore Patrol Vessels.
“This project will add to our existing work at our Henderson shipyard, where two High Speed Support Vessels are being constructed for the Royal Navy of Oman this year as well as two additional Cape Class Patrol Boats.