An official from the French group expressed confidence in a statement that the government will finalize a deal with the Naval Group. This follows a declaration of intent signed by the defense ministers of Portugal and Italy, focusing on cooperation primarily within the industry, as the Italian Fincantieri competes with the French for the contract.
The Naval Group is convinced that its proposal, which offers three state-of-the-art frigates “fully operational and combat-proven by 2030,” is the best and most rational choice for the Portuguese Navy and authorities.
The proposal, currently under evaluation, includes a plan to modernize the Arsenal do Alfeite shipyards. This would involve investments estimated at several tens of millions of euros to create a naval industry hub.
“At the heart of this proposal is the creation of a new company jointly owned by the Naval Group and Arsenal do Alfeite. This new company will manage and execute all future maintenance contracts for the Portuguese Navy, ensuring the highest levels of operational availability and performance, contributing directly to Portugal’s strategic sovereignty and autonomy, and consolidating a sustainable naval industrial ecosystem,” stated a release from the group.
This new entity is expected to “secure and create jobs” at Arsenal do Alfeite and within many other Portuguese maintenance companies.
The Naval Group also promises that “20% of the investment in the frigates will be returned to the national economy over their lifecycle.”
The French are prepared to deliver the new frigates within five years “meeting the SAFE (Instrument for European Security Action) requirements swiftly and risk-free, as the model is already in mass production and has been delivered to the French Navy and will be to the Hellenic Navy by the end of the year.”
The government is required to present its plan in Brussels by the end of the month to secure six billion euros in European loans from the SAFE program, set for execution by 2030.
“The process, by the end of February, will be considered by the European Commission. Truthfully, I would say that what pertains to SAFE begins at the end of November, and a long path leads to February. At this point in November, we are not deciding what will be completed. Indeed, decisions could foresee actions in November that might not materialize by February,” stated Nuno Melo today.
During an event at Forte de São Julião da Barra in Oeiras, alongside Italian counterpart Guido Crosetto, Nuno Melo told journalists that “at this moment, no decision” has been made regarding the deal.
The Navy currently possesses five frigates: Vasco da Gama, Álvares Cabral, Corte-Real, Bartolomeu Dias, and D. Francisco de Almeida.
On November 5, during a hearing in the Assembly of the Republic, Defense Minister Nuno Melo indicated that acquiring frigates was “increasingly a very strong possibility, given NATO’s capability targets.”
