OPV's for sale. Mint condition!!!

[pmtts]

I've just picked this up on the wire.....

BAE Systems, the UK defence company, is facing a £150m hit after the Trinidad and Tobago government said it wanted to cancel a contract to acquire three drug-busting patrol ships.

The company had been due to provide the Caribbean nation with patrol vessels and ancillary support in a deal signed by VT Shipbuilding in April 2007. BAE acquired VT in October 2009.

BAE said the patrol ship programme had suffered from delays for some time and that it reduced the amount paid for VT as a consequence.The defence company warned that the size of any financial penalty could not be "definitively assessed at this time" but estimated a "charge of up to £150m, before tax, may be required in the accounts for 2010." It said that estimate did not take into account the potential resale value of the vessels.

BAE said it would look to engage the Trinidad government in "commercial discussions... to find an equitable settlement".

The company said the first patrol ship was in the final stages of being handed over to the Trinidad government, while the second would be ready next month. VT had originally committed to providing the ships in mid-2009 and the Trinidad media suggested the country's government had become increasingly frustrated by the delays.

The government is reported to have already spent millions of pounds training would-be sailors to serve on the ships.

[warthog]

what length are they?

[pmtts]

what length are they?

90 Metre's

[warthog]

90m nice!

[Lordinajamjar]

Nice.

[Goldie fish]

Very nice, however I think we have almost signed the dotted line for our 2 @ £85m.

Problem is VT etc were concentrating on securing "big" RN contracts, leaving their smaller projects to fall behind.

[Flamingo]

Daddy buy me one of those!

[warthog]

have we actually signed a deal with babcock for the new OPV's?

[sofa]

Would they suit Irish waters ?

[Goldie fish]

Would they suit Irish waters ?

Yes, very.

As i said earlier, we are days from signing the dotted line and I'm sure VT will want the money sooner than Babcock have agreed.

VT should have no problem selling them though, unless this story is just a scare tactic to wake someone up somewhere.

[DeV]

I've just picked this up on the wire.....

BAE Systems, the UK defence company, is facing a £150m hit after the Trinidad and Tobago government said it wanted to cancel a contract to acquire three drug-busting patrol ships.

The company had been due to provide the Caribbean nation with patrol vessels and ancillary support in a deal signed by VT Shipbuilding in April 2007. BAE acquired VT in October 2009.

BAE said the patrol ship programme had suffered from delays for some time and that it reduced the amount paid for VT as a consequence.The defence company warned that the size of any financial penalty could not be "definitively assessed at this time" but estimated a "charge of up to £150m, before tax, may be required in the accounts for 2010." It said that estimate did not take into account the potential resale value of the vessels.

BAE said it would look to engage the Trinidad government in "commercial discussions... to find an equitable settlement".

The company said the first patrol ship was in the final stages of being handed over to the Trinidad government, while the second would be ready next month. VT had originally committed to providing the ships in mid-2009 and the Trinidad media suggested the country's government had become increasingly frustrated by the delays.

The government is reported to have already spent millions of pounds training would-be sailors to serve on the ships.

To me this reads as if there are financial penalties in the contract for late delivery not that they actually want to cancel the contract.

[Jetjock]

http://www.portsmouth.co.uk/newshome...hip.6544236.jp

Interesting. Could they mount a 76mm?

[pmtts]

To me this reads as if there are financial penalties in the contract for late delivery not that they actually want to cancel the contract.

One major daily and two local to the Hampshire area, including one Jetjock has quoted report that the contract is no more.

[warthog]

from JetJock's link...

"BAE Systems announces that it has received written notice from the Government of Trinidad and Tobago (GORTT) that it wishes to cancel the programme under which BAE Systems is providing three Offshore Patrol Vessels and support to the Trinidad and Tobago Coast Guard. The contract was entered into in April 2007 by the previous Trinidad and Tobago government and VT Shipbuilding International Limited; BAE Systems acquired full control of VT Shipbuilding International Limited in October 2009.


Whilst the programme has suffered from delays, prior to the receipt of the notice from the GORTT the parties had been engaged in the final stages of acceptance of the first ship. The second ship has completed its sea trials and will be ready for delivery in October. The third ship is due to begin sea trials in November.



Cost overruns on the programme resulted in cash adjustment to the acquisition consideration and further provisions were charged to the acquisition accounts for that transaction. Whilst the financial consequences of any termination cannot be definitively assessed at this time, the Group estimates a further charge of up to £150 million, before tax, may be required in the Group's accounts for 2010, before recognising value from the potential re-sale of the vessels.



The company will seek to engage in commercial discussions with GORTT to find an equitable settlement."





Issued by:

BAE Systems plc

London

implies they will we sold if a settlement is not reached...

[warthog]

so copied from the OPV thread

5 of our 8 vessels are due for replacement between 2008 and 2015.

so if we somehow got our grubby little hands on these
negotiate a phased payment,so we take them but pay for them spread over five years
take all three deirdre class out of service by the end of 2011
giving time for shakedown and training to get at least the first two of the three operational

continue with our plans with Babcock to build OPV's BUT we push back the project delivery until 2015/16 and expand the order from two to three ships (to replace Eithne & the peacocks with a single design) so basically our payments for all 6 vessels would run back to back for 10 yeas

this is total walter mitty stuff I know but imagine it,we could have 6 modern vessels bought by 2018 if we put our minds to it!