The Belgian government has approved an increase of 800 million euros in the total cost for the two future frigates of the Belgian Navy, which was initially estimated at 1.2 billion euros by 2031. The updated cost is now more than 2 billion euros. The office of Defense Minister Ludivine Dedonder confirmed that the Council of Ministers gave its agreement to the revision of the cost of the frigates, but did not provide any further details. The acquisition of the frigates is a partnership with the Netherlands, and the Dutch Parliament must approve the price increase. An announcement is expected to be made by both countries on Monday afternoon. The Finance Inspectorate indicated that the increase in the costs should be fully offset from the Defense budget, but it is not clear what other military investments will be impacted. The Netherlands has agreed to guarantee a greater societal return for Belgian industry than initially planned, with a commitment to purchase supplies, works or services in Belgium worth 355 million euros.
The government validated this Friday the increase of some 800 million euros in the total bill for the two future frigates of the Belgian Navy. Initially estimated at 1.2 billion euros by 2031 (year of payment of the last installment of the bill), it has been reassessed at more than 2 billion euros.
The office of Defense Minister Ludivine Dedonder (PS) confirmed to Free that the restricted Council of Ministers gave its agreement on Friday to the revision of the cost of the frigates. But he does not say more for the moment.
The acquisition of the frigates is done in partnership with the Netherlands (two ships per country). They should approve the price increase on Monday morning, after agreement from the Dutch Parliament. A joint communication to the two countries should then take place in the afternoon.
Greater societal returns
In a note sent to Minister Dedonder, the Finance Inspectorate indicated that the increase in the costs of the two Belgian frigates should be fully offset from the Defense budget. We do not yet know what other military investments will suffer.
The Netherlands is responsible for acquiring the frigates on behalf of the two nations. Given the significant increase in costs, the Netherlands agreed to guarantee a greater societal return for Belgian industry than initially planned. According to a confidential note sent to the Belgian Parliament, the Dutch Defense “undertakes to make purchases for an amount of 355 million in supplies, works or services in Belgium”. An element, obviously, to which Minister Dedonder and the Belgian government were attached.
As the bill for the two future frigates of the Belgian Navy is reassessed at over 2 billion euros, it remains to be seen what other military investments will suffer. However, the Dutch Defense has agreed to guarantee a greater societal return for Belgian industry than initially planned, which includes making purchases worth 355 million in supplies, works or services in Belgium. The joint communication to the two countries is expected to take place on Monday afternoon.