Australia pledges $2.7b for nuclear submarine shipyard

SYDNEY:

Australia said on Sunday it would spend AUD3.9 billion to progress construction of a shipyard that will help deliver nuclear-powered submarines under the trilateral AUKUS defence pact with the US and Britain.

Announced in 2021, AUKUS is Australia's largest-ever defence investment and will see US-commanded Virginia-class submarines based in Australia from 2027, several Virginia submarines sold to Australia from around 2030, and Britain and Australia building a new class of AUKUS nuclear-powered submarine.

Australian Prime Minister Anthony Albanese described the AUD3.9 billion as a down payment to deliver the new shipyard in Osborne, a suburb of Adelaide in South Australia state.

"Investing in the submarine construction yard at Osborne is critical to delivering Australia's conventionally-armed, nuclear-powered submarines," Albanese said in a statement. Official projections put the total cost of the build at AUD30b "over coming decades", he said.