The 2023 Defence Major Projects Report has been released, highlighting progress on 11 significant military procurement projects.
Presenting to the Foreign Affairs, Defence and Trade Select Committee on 22 August, Deputy Secretary of Capability Delivery Sarah Minson said the report highlighted the progress Ministry of Defence and the New Zealand Defence Force were making on a number of complex procurement programmes and projects.
The two programmes and nine projects included in the report have a whole of life cost greater than $25 million and are deemed medium or high risk.
“The Ministry has about $6 billion of major defence capability projects in delivery, with about two thirds of that funding spent to date. The delivery environment in which that investment is taking place is challenging.
“However, good progress continues to be made and while a number of projects are experiencing schedule delays, all are forecasting to deliver the agreed quality and scope within their Cabinet-approved budgets.”
Project milestones highlighted in the report includes:
- The Frigate, HMNZS Te Mana, successfully completed a live firing of the SeaCeaptor local area defence missile. The firing marked the end of the Naval Operational Testing and Evaluation process. While the final milestone of Operational Release is still to be achieved, the upgraded systems delivered as part of the Frigate System Upgrade project are available and are being used.
- In December 2023, the Air Surveillance Maritime Patrol project completed ahead of schedule the second phase of releasing the P-8A Poseidon capability. This means the aircraft can now be used operationally for global maritime surveillance and patrol, search and rescue, and humanitarian aid and disaster relief.
- All 43 Bushmaster protected vehicles were delivered and driver training is underway. The selection of a Prime Systems Integrator to give the vehicles secure communications and access to the Network Enabled Army’s Sitaware Battle Management System is progressing on schedule.
- Flight testing of the new C-130J aircraft commenced in March, and the fleet remain on track for delivery beginning later this year.
Each year the Major Projects Report is presented to the Select Committee. This year, presenting were Sarah Minson from the Ministry and NZDF’s Acting Vice Chief of Defence Force, Commodore Mat Williams.
The 2023 report covers the following programmes and projects: Air Surveillance Maritime Patrol (P-8A Poseidon); Future Air Mobility Capability – Tactical (C130-J Hercules); Frigate Sustainment Programme; Anzac Frigate Systems Upgrade; Frigate Sustainment Communications; Operational and Regulatory Aviation Compliance Sustainment; Dive and Hydrographic Vessel (HMNZS Manawanui); Maritime Sustainment Capability (HMNZS Aotearoa); Fixed High Frequency Radio Refresh; Network Enabled Army (NEA) C4 and NEA Reconnaissance and Surveillance; and the Protected Vehicle Medium (NZ 5.5 Bushmasters).
About the Major Projects Report
The 2023 Major Projects Report is the 14th edition of the Report.
This report provides information about Defence’s management of projects for the financial year ending 30 June 2023.