In the earlier investment frame of 12 240 billion NOK the project administration costs were not specified. Later it was decided to transfer these expenses to the common operational budget of the Armed Forces, but without reducing the project’s cost frame accordingly. These resources served to enhance the risk reserve for the project.

Following a new evaluation of the project realisation costs, a budget increase from 431 million NOK to 519 million NOK has become necessary. In the Government’s view, these expenses belong to the project’s financial frame, even though they fall under another type of costs and thus shall be charged to another budget account. Based on this, the Government wishes to increase the project’s frame by 519 million NOK to 12,759 billion NOK. When increased currency estimations and general price growth are included, the project frame becomes 14, 066 billion 2000 NOK .

In the Proposition, the Government outlines several initiatives to reduce the operational costs of the Navy and calls for further restructuring of the Armed Forces’ total activity. The Proposition describes risk evaluations, warranty questions and conditions regarding the frigates’ capacity. Also included are issues such as offset arrangements, the relationship to Blohm & Voss, price growth and updated cost estimations for the main and related projects (the concept and definition phase, construction, new anti ship missiles and helicopter).

For further information you may contact the Press and Information Section at tel. no:

(47) 23 09 23 03