Dutch shipbuilder Damen is seeking almost EUR 4.7 billion in damages from the German government following the cancellation of the F126 frigate programme. This has been reported by both German and Dutch media that have seen the letter sent by a lawyer to the German government.
The German Ministry of Defence cancelled the F126 project because of significant delays, cost overruns and what it described as unforeseeable risks. Damen Schelde Naval Shipbuilding (DSNS) had initially been appointed as the main contractor for four such frigates. The order was extended to six in June 2024. However, according to the German government the project failed to meet its agreed schedule and budget.
An assessment of whether transferring the main contractor role to Naval Vessels Lürssen (NVL), part of Rheinmetall, could save the programme was also negative. Defence Minister Boris Pistorius subsequently decided to end the F126 project in June.
Also read: Germany scraps F126 frigate programme
Damen disputes German claims
Pistorius has argued that the cancellation resulted from poor performance by the contractor. He has also said Germany would seek to recover the EUR 2.3 billion it had invested in the programme from Damen.
Der Spiegel is one of the media outlets that has seen the letter by lawyer Peter Gauweiler, who represents Damen. The lawyer claims that the German government and Damen had worked together for years to address the programme’s problems. He also points out that Germany ordered two additional frigates in 2024 despite being aware of delays.
According to Der Spiegel, Gauweiler further argues that the government itself contributed to the failure to meet the original schedule. In addition, the German newspaper reports that the Defence Ministry considers the legal dispute a significant risk.
Eight MEKO frigates to replace six F126s
Germany plans to replace the six cancelled F126s with eight MEKO A-200-DEU frigates. According to the German Ministry of Defence, the additional vessels will enable the German Navy to fulfil its core missions, including anti-submarine warfare, and meet its NATO commitments.
In July, the German Bundestag’s Budget Committee approved the procurement of the first four MEKO frigates, with an option for four more. This clears the way for the formal signing of the contract. The first of these frigates is to be delivered to the German navy in 2029.
Picture: The Type 126 frigate that will not be built (image by Bundeswehr/Damen Naval).
Also read: Germany ready to order four MEKO frigates with TKMS
