S:
SECRET/LOCSEN
44.
Shore support facilities required for LSP/BMP/DED/Refit
45.
Shore support manning changes to present levels
46. ARM Required craft characteristics
NOTE. DFM to provide suitable wording for paras 44, 45 and 46 above]
COSTS
47. The capital cost of the replacement vessels will be shared between the
Ministry of Defence and the Hong Kong Governments on a 25%/75% basis, in accordance
with an exchange of letters following the conclusion of the 1975 Defence Cost
Agreement, this arrangement has been confirmed by the Hong Kong Government.
48. The costs for the procurement of the 5 Patrol Craft proposed by this NSR are
£28.75M (at Sept 78 price levels). This figure includes Ship and Weapon Department
costs and a contingency allowance of £3M. DS4 to confirm HK Gov agreement to costs?
Provision was made in LTC 1978 (at Sept 1977 prices) for 5 vessels (including
weapons) as follows:-
1978/79 1979/80
1980/81
1981/82 1982/83 1983/84
£0.03M £0.42M £3.43M £7.52M £5.48M £0.90M
The latest estimate of the spread of costs (at Sept 1978 prices) is:
1979/80
1980/81 1981/82
£0.11M
£2.98M
£9.90M
TOTAL
£17.78M
1982/83 1983/84. 1984/85 TOTAL
£11.41M
£4.25M £0.10M £28.75M
The difference in costs is accounted for by:
a. Changes in price levels of about 15% between the two LTC's
b. Inclusion of a Ship Department £0.6M contingency factor per vessel
C.
A more refined costing based on the definitive specifications in the NSR.
Full movision has been mede_7 for this expenditure in LTC 1979, offset
by appropriation in id of 75%
*
from the Hong Kong Government across the board. DS4 to clarify whether UK prefinancing will be required}.
PROCUREMENT
49. Assuming all the craft are procurement in the UK, the timescale to acceptance is expected to be:
2. Invite design and build tenders - November 1979
b. Receive tender replies
-
February 1980
•
Place order
May 1980
15 SECRET/LOCSEN