Australia’s first evolved Cape-class patrol boats, Cape Otway, in Northern Territory. Credit: LSIS Shane Cameron/Royal Australian Navy/© Commonwealth of Australia, Department of Defence.

The Australian Government has announced to make amendments to rectify issues in the delivery of existing crucial defence projects.

The government said that several major defence projects, worth over $43.15bn (A$69bn) of approved budgets, have either been delayed or faced budget variations.

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This data is based on the findings of Australian National Audit Office and advice from Department of Defence (DoD).

It further reveals that nearly 28 projects have been delayed and 18 projects have exceeded stipulated budget, while $4.06bn (A$6.5bn) variations from approved budgets have been noted. 

The delayed projects include $2.31bn (A$3.7bn) offshore patrol vessel, $222.8m (A$356m) evolved Cape-class patrol boats, $607.22m (A$970m) battlefield command system and other defence satellite communication projects worth $567m (A$906m).

The $27.53bn (A$44bn) Hunter-class frigate programme has faced a four-year delay and its cost has increased by $9.39bn (A$15bn).

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Besides, the $876.12m (A$1.4bn) C-27J Spartan aircraft, that were delivered after four and a half years of delay, have shown operational failures.

In order to rectify the issues, the current Albanese Government has presented a new process, which involves establishing an independent projects and portfolio management office under the DoD.

Australian Defence Industry Minister Pat Conroy said: “The Albanese Government will address this legacy by making reforms to improve performance of defence capability acquisition projects.

“Establishing projects management office to work closely with Ministers will provide a laser-like focus on fixing projects that are running into difficulties.”

It further includes creating an ‘early warning’ system for placing projects under ‘Projects of Concern/Projects of Interest’ categories, whose monthly reports will be submitted to the DoD.

It will allow government to provide additional resources to address troubled projects.

Furthermore, regular ministerial summits to discuss associated progress will also be held.