Australian Cabinet Overhaul Delays US$25 Billion Defense Tenders

Australian defense tenders valued at US$25 billion have been delayed by a cabinet reshuffle in Tony Abbott ’s government—a move likely to frustrate a suite of big overseas contractors eager to supply new state-of-the-art military hardware.

According to defense officials familiar with the matter, one delay is to an US$8 billion tender for new armored vehicles that was due to start in mid-January. Ministers are still hoping the process will attract bids from defense contractors from as far away as the U.S. and Europe.

Among other projects forced onto the backburner, the officials said, are plans to spend as much as US$17 billion on a new fleet of up-to 12 submarines.

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