The German Navy will not receive the six planned F126-class frigates that were originally ordered with Damen Naval. The German Ministry of Defence has taken this decision due to significant delays, enormous cost overruns and unforeseeable risks. A replacement for the vital task of anti-submarine warfare is already on the horizon.
The ability to hunt submarines is of the utmost importance for national and allied defence. In order to enhance the German Navy’s capabilities in this regard, six F126-class frigates were to be procured. However, Damen Schelde Naval Shipbuilding (DSNS), which was initially appointed as the main contractor, was unable to meet the agreed time and budget constraints.
Eight MEKO A-200-DEU-class frigates
To replace the six F126s, the Navy is set to receive a total of eight MEKO A-200-DEU-class frigates, in accordance with the Ministry of Defence’s plans. According to the assessment of the Inspector of the Navy, Vice-Admiral Jan Christian Kaack, these ships would enable the German Navy to fulfil its core mission of anti-submarine warfare and meet its NATO obligations.
The Ministry therefore intends to present the basis for a decision on the purchase of the MEKO A-200-DEU frigates to the Bundestag’s Budget Committee as soon as possible.
More ships for less money
The procurement cost for the first four MEKO-A-200-DEU frigates would amount to around EUR 6.3 billion, subject to approval by the Budget Committee. The option for four further ships could be exercised by the end of 2026 for around EUR 5.3 billion.
The acronym MEKO stands for “multi-purpose combination”. The tried-and-tested modular concept allows patrol vessels, corvettes, frigates and small destroyers to be individually configured. Ships from the MEKO family are in service with many navies worldwide.
This price compares with costs in the region of EUR 18 billion euros that the purchase of six F126 frigates would have been expected to incur. This was the finding of the Ministry of Defence’s review of the project situation.
Furthermore, in the event of a change of main contractor, the Federal Government would have had to waive, under the terms of the contract, any potential claims for damages against the previous contractor, DSNS. According to the Ministry of Defence, this would be contrary to the principle of responsible management of budgetary funds.
Unclear what this means for Damen
Software issues initially prevented the company from meeting important deadlines. As a result, the German government suspended payments to the Dutch shipbuilder, after which the Dutch government announced it was willing to provide a loan to Damen. As Germany resumed its payments, the loan proved unneccessary.
Dutch government to acquire shares in Damen?
The Dutch Ministry of Defence tells the NOS that it has taken note of the German decision. ‘We will now investigate what the possible consequences are for the Netherlands. Damen is and remains an important supplier to the Royal Netherlands Navy and plays a central role in the fleet’s replacement programme.’
