Australia signs a $50 Billion worth contract with France to build a fleet of submarines

Australia signs a contract with the French firm Naval for naval defence last Monday to build a fleet of 12 new submarines worth 50 billion Australlian Dollars ($35.5) at the end of two years of negotiations and raised doubts in one of the most lucrative defense deals in the world.

Australia preferred the bid offered by the French firm Naval to other offers from Japan and Germany to build a fleet of submarines in 2016.

Final contracts have been postponed amid domestic media reports of cost increases and production delays.

The new submarines to be built are the center of Australia’s plan to expand its military significantly to protect strategic and trade interests in the Asian-Pacific area.

It is scheduled to deliver the first submarine in the early thirties and the last one during fifties.
Reuters