The Navy is called upon to manage a new situation where the corvette program “goes backwards” with options being limited and focused on the modernization of the four MEKO frigates but also the possibility of activating the option for the 4th French frigate Belharra
The “scissored” budget available to the government for the armament program of the Fleet, in combination with the so far inability to proceed with the rehabilitation program of the Elefsina shipyards, seem to be the two determining factors leading to “wreck” – at least until the financial data- of the Navy’s new corvette acquisition program. Already at the beginning of the month, with its exclusive report, Newpost had pointed out that the signs showed that the program “holds” despite the fact that the GEN had already delivered from the beginning of the summer to the political leadership a complete file with the evaluation of all the proposals and the his final recommendation on the proposed vessels. With the developments becoming rapid and from the “face” of the last few months we go to “keep” which it seems finally turns into “yock” while the program is referred to the future tense.
Despite the efforts to “put the train on the tracks” in the issue of the rehabilitation of the Elefsina shipyards which the government wishes to link with the construction of the new corvettes of the Fleet, significant problems have not yet been overcome. Consequently, it is considered impossible with these data, even if the necessary funds had been secured, that any agreement of the company that would win the program to build the corvettes in Eleusis would proceed immediately. The negative economic situation due to the energy crisis and above all the uncertainty for the coming period with all global economic data being fluid was the fuse to make the decision to “freeze” the program until further notice. The total budget that can now be allocated for the equipment needs of the Fleet fell according to information, with a strict “ceiling” of 2 billion, which now limits the possibilities of options given that the goal is to build the next new ships of the Navy in Greek shipyards.
Now the Navy is called upon to manage a new situation where the corvette program “goes backwards” with the options being limited and focused on the modernization of the four MEKO frigates but also on the possibility of activating the option for the 4th French frigate Belharra. After all, the modernization of the HYDRA-class frigates had already been decided since the summer to be a priority regardless of the corvette program. But even in this program there are enough “thorns” and the unknown “x” still keep the landscape “cloudy”.
The modernization has already been characterized as a “high risk” project given the age of the ships since no one can determine with absolute precision what will happen when the work begins. Already the Navy has at its disposal a series of proposals, the main ones being those of the German TKMS in collaboration with Thales Netherlands and the American Lockheed Martin. Information indicates that the proposal of TKMS/Thales Netherlands exceeds 500 million euros, with the American LockheedMartin approaching 1 billion, but the company is talking about a complete upgrade package for all four ships. The Navy, however, seems to estimate that the cost of the modernization cannot exceed 500 million. The shipyard where the work will be carried out is also still in demand, with a prerequisite from the government that it be located in Greece.
At the same time, the Naval Staff not only seems to want the activation of the option to buy the 4th French Belharra frigate as soon as possible, but to estimate that it is now a one-way street after the decision to “freeze” the corvette program. The right to activate the option has a time horizon until June 2023, while no new agreement is required since it is included in the contract that is already “running” for the first three FDIs. The total cost of the 4th Belharra with full armament and support as provided for in the contract is under one billion and given the soaring prices in raw materials and energy is characterized as extremely profitable. The great progress in the work on the first two Greek Belharra frigates at the French shipyards of Lorient leaves the Navy completely satisfied as everything seems to be ahead of schedule.
