TT might be on the hook for $3B for patrol vessels

The cost overruns on the three offshore patrol boats for Trinidad and Tobago that the Manning government ordered had doubled, taking the overall cost to about TT$3 billion.

And the the new People's Partnership administration is likely going to be on the hook for that although it has decided to cancel the order for the boats.


BAE Systems reported last week that the Trinidad and Tobago Government terminated the contract on the eve of the delivery of the first vessel. BAE is hoping to hold discussions with government officials to find an equitable settlement.


The Manning government placed the order for the ships in 2007. The new government initially began talks with the supplier to take delivery of the first of the three vessels.However, it was concerned about the long delays as well as the cosst and decided that it was not a good idea after all and advised BAE that it was cancelling the order.

Read the story: TT cancels $1.5B contract for offshore vessels

Acting National Security Minister Subhas Panday told the Trinidad Express he learned about the cancellation through media reports. He said the matter was not on the Cabinet agenda on Thursday.

"I don't have any information at all regarding that issue, but I am certain each side would have their lawyers, and if what they are saying there is true, it would be dealt with, but I cannot say what is the Government's decision at this time," Panday told the paper.

The building contract was only one part of the overall agreement between the previous government and the ship building company. Other costs involved training of personnel to operate the vessels and maintenance of the patrol boats.

The delivery was originally scheduled for 2009.