• Military Menu                       

• Introduction
• Systems
• Facilities
• Agencies
• Industry
• Operations
• Countries
• Hot Documents
• News
• Reports
• Policy
• Budget
• Congress
• Links

• WMD
• Intelligence
• Homeland Security
• Space

Alvaro de Bazan F-100 Frigate

Costs

The Cabinet approved on the 24 of January of 1997 the construction of four F-100 frigates for the Navy, to go into service between the years 2002 and 2007. The order for the construction of these ships was possible as a result of the collaboration of the Ministry of Industry and Energy, within the framework decided with the department of Defense for the financing, by means of reimbursable credits to the companies, of great national programs of armaments development.

The cost of these frigates ascended to 280,000 million pesetas, to be paid in ten annuities. Of these sums, 155,200 correspond to national production and 124,800 million to the foreign acquisition of those equipment and services for whose development absolute national capacity does not exist or whose manufacture in Spain is not profitable due to the limitation of series (for example, the propulsion gas turbines).

Of these imports, 93,612 million will be acquired by means of purchases FMS (Foreign Military Sales) through the American Navy. This system simplifies the reception process and guarantees better adjusted prices, total quality control and incorporation of the latest improvements to the systems for Spain, these being included in a long series of considered purchases and being considered as if they were acquisitions of the U.S. Navy.

For the foreign purchases, compensations valued in 101.088 million pesetas were negotiated (81 percents on the 124,800 million imports); the result of twenty-nine Agreements of Industrial Cooperation with foreign providers. Thus, the Program will result in, for Spain as a whole, in an anticipated industrial return (national manufacture more compensations) of 256,288 million pesetas, equivalent to 91.5 percent of the total investment.

The original contract for four ships was worth €1.683 million, but they ended up costing €1.810 million. As of 2010 it was estimated that the fifth vessel, F-105 would cost €834m [about US$1.1 billion).