KUALA LUMPUR, Feb 15 (KUNA) -- Australia announced Sunday an initial allocation of AUD 3.98 billion (approx. USD 2.28 billion) to establish a new nuclear-powered submarine construction facility under the trilateral AUKUS security pact with Britain and the United States.
The facility will be built near the Osborne area in the southern city of Adelaide to enhance Australia's long-range defense capabilities in the Pacific and address mounting strategic challenges.
Australian Prime Minister Anthony Albanese said in a press statement that investment in the submarine construction yard is vital to delivering conventionally armed, nuclear-powered Australian submarines.
He added that Canberra is accelerating AUKUS opportunities to secure Australia's future defense capabilities while generating lasting prosperity and sustainable jobs for the state.
Defense Minister Richard Marles stated that the facility will form the core of the project, noting that the ongoing transformation at the site demonstrates Australia is on track to achieve sovereign nuclear-powered submarine construction capacity for decades ahead.
He indicated that long-term expenditure on the facility is projected to reach approximately AUD 30 billion (approx. USD 21 billion) as part of a broader national plan to develop the military shipbuilding sector and enable domestic submarine production in the future.
The AUKUS agreement aims to provide Australia with an advanced fleet of submarines from the United States, alongside cooperation on a wide range of advanced military technologies.
Submarine sales are scheduled to begin in 2032 as part of Australia's strategy to bolster long-range strike capabilities in the Pacific, particularly in addressing challenges posed by China.
The overall deal could cost up to USD 235 billion over the next three decades, including technology transfers enabling Australia to build its own submarines. (end) aab.aai