LCS contract awarded to BNS

PETALING JAYA: It appears I spoke too soon. From the AFP and BSKL announcement page, it appears that BNS has gotten its LOA from the govt to build the SGPV/LCS or frigate. And more importantly the ceiling price has gone up to RM9 billion. Yes its the ceiling price, it can go lower but have you read any government contract that go lower?

When announced earlier this year, the ceiling price was RM6 billion and almost 11 months later its RM9 billion. I am not a betting man but I doubt that the ceiling price will stay and the delivery date (2017) will be met. AFP call the ships corvettes but the BNS release says frigate-class. As I mentioned before. I will call these ships the Laksamana-class frigates.

KUALA LUMPUR, Dec 17, 2011 (AFP) – A Malaysian shipbuilder says it has won a 9.0 billion ringgit ($2.8 billion) deal from Kuala Lumpur for six naval vessels developed by French manufacturer DCNS.

In a filing with the local bourse late Friday, Boustead Naval Shipyard said it was given a letter of award by the Malaysian defence ministry to build and deliver six “second generation patrol vessels littoral combat ships”.

“The delivery of the first of class ship is estimated in 2017 with follow on ships every six months thereafter,” it added.

Last week Boustead said it had been selected by Malaysia’s navy to build the corvettes, which DCNS says can stay at sea for three weeks and are designed to navigate coastal areas and island groups to fight piracy and patrol fisheries.

The vessels are 100 metres (330 feet) long and can each transport one EC275 helicopter made by Eurocopter, a subsidiary of EADS.

DCNS already had a relationship with Boustead through a joint venture in 2009 to maintain two diesel-propelled Scorpene submarines used by the Malaysian navy.

DCNS has previously sold 11 (wrong its six) frigates to Malaysia’s neighbour Singapore, five of which were built in the city-state. -AFP

BOUSTEAD HEAVY INDUSTRIES CORPORATION BHD (“BHIC” OR “THE COMPANY”) – RECEIPT OF LETTER OF AWARD TO UNDERTAKE THE CONSTRUCTION OF SIX (6) SECOND GENERATION PATROL VESSEL – LITTORAL COMBAT SHIPS (FRIGATE CLASS)

Announcement Details/Table Section :

Further to the announcement made on 18 October 2010, the Company wishes to inform that its associate company, Boustead Naval Shipyard Sdn. Bhd. had received the Letter of Award dated 16 December 2011 from the Ministry of Defence Malaysia for the Contract to design, construct, equip, install, commission, integrate, test and trials, and deliver six (6) units of “Second Generation Patrol Vessels Littoral Combat Ships (Frigate Class)” (“the Contract”). The Contract carries a ceiling of RM 9.0 billion, to be implemented over three (3) Malaysia Plans, 10, 11 and 12. The delivery of the First of Class ship is estimated in 2017 with follow on ships every 6 months thereafter.

The Contract will have no material effect on the earnings of the Company for the financial year ending 31 December 2011, but will contribute positively to the future earnings of BHIC Group.

None of the Directors nor Substantial Shareholders of the Company, or persons connected with them, has any interest, direct or indirect, in the Contract.

Malaysian Defence

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