Defence Long-Term Development Plan (LTDP)
(October 2006 Update)
5. Projects approved and in Acquisition phase
Boeing 727 Replacement/Boeing 757 Modification
Description
- This project replaced the Boeing 727 aircraft with Boeing 757 aircraft with greater range and payload capacity. A modification programme, including freight capability, engine enhancements and upgraded communications and navigation equipment, will configure the aircraft to meet the strategic airlift capability required by the NZDF.
Policy Value
- In addition to the C-130s, New Zealand requires a strategic airlift capability provided by jet transport aircraft. This was previously provided by two Boeing 727 aircraft and is now provided by the Boeing 757 aircraft. Strategic airlift is an enabler for the same roles and tasks as the C-130, particularly the deployment and sustainment of NZDF forces on overseas deployments and the evacuation of New Zealand citizens.
Capability Gaps
- An effective air transport capability is a critical enabler for many operations and has a high degree of utility across all of the Government's defence policy objectives. The capability provides essential air transport for the deployment of NZDF personnel and equipment within New Zealand, to the South Pacific, Australia, the Asia-Pacific region and globally.
- In order to best meet both strategic and tactical aircraft requirements, and meet the Government's policy requirements, two Boeing 757 aircraft in a combination freight/passenger configuration are required.
Links to other Capabilities
- This project has links to the following projects and capabilities:
- C-130 Life Extension
Timing
- The project is expected to be completed in 2008.
Current Status
- The two Boeing 757 aircraft, purchased in a passenger configuration, have been in service since mid-2003. Modifications necessary to meet the full capability requirements will begin in the first quarter of 2007.
Costs
- Acquiring and modifying the Boeing 757 aircraft is expected to cost about $220 million.
Medium Range Anti-Armour Weapon
Description
- This project will provide protection for New Zealand's land forces from armoured threats.
Policy Value
- The Medium Range Anti-Armour Weapon (MRAAW) provides land forces with a medium-range capability against armoured vehicles and other targets. It is a critical part of any contribution to peace enforcement operations where land forces may face an armoured vehicle threat. The MRAAW also has some utility in peacekeeping operations in the Asia-Pacific region and globally for self-protection in the event of an escalation in the threat to ground forces.
Capability Gap
- New Zealand land forces are currently very vulnerable to threats from tanks, armoured vehicles or other anti-armour weapons. There is a need for a capability to engage these threats at the greatest distance practicable.
- The Army currently has a short-range anti-armour weapon. It is, however, limited in range and lethality. A medium-range anti-armour weapon is required to defeat threats at a greater range than the current weapon.
Links to other Capabilities
- This project has links to the following projects and capabilities:
- Light Armoured Vehicle
- Light Operational Vehicle
- Direct Fire Support Weapon - Area (Automatic Grenade Launchers)
- Land Intelligence Surveillance Reconnaissance
Timing
- Delivery commenced mid-2006, for completion by December 2006.
Current Status
- This project has been undertaken through the United States Foreign Military Sales (FMS) programme and involves the purchase of Javelin missiles and associated support equipment.
Costs
- This project is expected to cost $24 million. The estimated life is 15 years, in service through life costs are $21 million, and the total cost of ownership is $43 million.
Very Low Level Air Defence Cueing
Description
- This project involves the purchase of additional equipment to bring the Mistral air defence system up to operational standard.
Policy Value
- An air defence capability is necessary to protect critical land force elements from air threats such as low flying aircraft and armed helicopters.
Capability Gap
- The current system has not been fully operational. Target detection, identification and tracking rely on visual observation. To be fully effective and minimise risk to friendly aircraft, the system requires an auto cueing and identification friend or foe (IFF) capability.
Links to other Capabilities
- This project has links to the following projects and capabilities:
- Light Armoured Vehicles
- Light Operational Vehicles
- Direct Fire Support Weapon
- Land Intelligence Surveillance Reconnaissance
Timing
- Delivery has taken place and training will be complete by December 2006.
Current Status
- New Zealand has contracted a Spanish company, Indra, for the supply of the IFF equipment.
Costs
- This project is expected to cost $14 million. The estimated life is 10 years, in service through life costs are $12 million, and the total cost of ownership is $27 million.
Light Operational Vehicles (LOV)
Description
- This project is providing the Army and Special Forces with a modern, light operational, military vehicle.
Policy Value
- The Light Operational Vehicle (LOV) provides an essential capability to enable the Army and Special Forces to train and to participate in operations in the South Pacific, Asia-Pacific region and globally. LOVs are the primary means of transport used by the Army and Special Forces in peacekeeping operations and also in peace enforcement operations, including in support of the light armoured vehicle. In addition, the LOVs may provide support for evacuation operations in the South Pacific.
Capability Gap
- The Army's light transport needs have been met by the Land Rovers. These have reached the end of their economic life.
Links to other Capabilities
- This project has links to the following projects and capabilities:
- Light Armoured Vehicle
- Multi-Role Vessel
- Land Intelligence Surveillance Reconnaissance
- Medium Range Anti-Armour Weapon
- Direct Fire Support Weapon - Area (Automatic Grenade Launchers)
Timing
- The project is almost completed.
Current Status
- 321 (248 non-armoured, 60 armoured, and 13 special operations) Pinzgauer Light Operational Vehicles were contracted for from Automotive Technik Ltd (ATL) of the United Kingdom. All but one armoured variant have been delivered. The last one has remained at ATL for testing and will be delivered in January 2007. The special operations variants were successfully deployed as part of the third rotation of the SAS personnel to Afghanistan. The RNZAF has also ordered five LOVs to replace their communications vehicles, using this project.
Costs
- The project is expected to cost about $93 million. The estimated life, in service through life costs, and the total cost of ownership are to be confirmed.
Multi-Role Vessel
Description
- The Multi-Role Vessel (MRV) will provide tactical sealift for the NZDF. The MRV's design also allows for a strategic sealift capability by way of a port to port capability. The MRV acquisition is part of a larger project, Project Protector, which also involves the acquisition of two offshore patrol vessels and four inshore patrol vessels (see section on Patrol Vessels below).
Policy Value
- The MRV will be used in the South Pacific and Asia-Pacific region for peace support operations, evacuation of personnel during civil emergencies, and disaster relief. A tactical sealift capability, to off-load people and equipment without access to a port facility, will be particularly useful in meeting the Government's policy objectives in the South Pacific. The MRV will also be able to undertake patrol and presence operations in New Zealand's EEZ and the South Pacific, and will provide the Government with an additional option for global deployments (or allow the ANZAC frigates to be deployed for global tasks). The MRV will provide additional berths for sea training purposes.
Capability Gap
- The NZDF has no tactical sealift capability and cannot easily deploy land force personnel and equipment into areas without port facilities. Tactical sealift vessels cannot be chartered. Without a MRV, New Zealand will continue to rely on the tactical sealift capabilities of our allies and friends in the region for deploying to peace support operations and evacuating our nationals from trouble spots.
- The MRV, in conjunction with the frigates and the offshore patrol vessels, will provide additional capacity for tasks such as defence diplomacy, support to land operations, patrol and disaster relief, and for training.
Links to other Capabilities
- This project has links to the following projects and capabilities:
- Offshore and Inshore Patrol Vessels
- Light Armoured Vehicle
- Light Operational Vehicle
- NZDF Helicopter Capability
- P-3 Mission Systems Upgrade
Timing
- Delivery is expected by early 2007.
Current Status
- The MRV has been launched and has arrived in Melbourne for final fitting out.
Cost
The cost of the entire Project Protector Fleet is $500 million. The estimated life is 10 - 25 years, in service through life costs are $1.9 billion, and the total cost of ownership is $2.4 billion.
Patrol Vessels
Description
- This project involves the acquisition of two offshore and four inshore patrol vessels to meet requirements for maritime surface surveillance in New Zealand's Exclusive Economic Zone (EEZ) and the South Pacific.
Policy Value
- Patrol vessels are an important element in the surveillance of New Zealand's EEZ and other maritime areas of interest. They work in conjunction with maritime patrol aircraft to protect our natural resources and detect and deter maritime transnational threats. Patrol vessels will meet many government agencies' needs, including the Ministry of Fisheries, the New Zealand Customs Service, the Department of Conservation, the Police, Maritime New Zealand and others. The offshore patrol vessels will also be able to support maritime counter-terrorism, and provide a presence in the South Pacific to support peace and stability and help with disaster relief.
Capability Gap
- New Zealand currently has a very limited maritime surface patrol capability provided by the two frigates and four inshore patrol craft. There is a need to patrol the inshore zone around New Zealand. There is also very limited capacity to undertake counter-terrorism operations at sea.
Links to other Capabilities
- This project has links to the following projects and capabilities:
- Multi-Role Vessel
- P-3 Mission Systems Upgrade
- NZDF Helicopter Capability
- Special Operations Capabilities
Timing
- These vessels will be delivered in 2007.
Current Status
- Construction of the two offshore and four inshore patrol vessels is underway.
Cost
The cost of the entire Project Protector Fleet is $500 million. The estimated life is 10 - 25 years, in service through life costs are $1.9 billion, and the total cost of ownership is $2.4 billion.
Special Operations Capability
Description
- This project is providing New Zealands' Special Forces with equipment to undertake special operations.
Policy Value
- Army special operations capabilities have utility in meeting a range of the Government's defence policy objectives and also in supporting policing operations in New Zealand and the South Pacific.
Links to Other Capabilities
- This project has links to the following capabilities:
- Light Operational Vehicle (Special Forces variant)
- Land Intelligence Surveillance Reconnaissance
- NZDF Helicopter Capability
- C-130 Life Extension
Current Status
- The Army is currently purchasing the equipment.
Cost
- This equipment will cost around $14 million. The estimated life, in service through life costs, and the total cost of ownership are to be confirmed.
Improvised Explosive Device Disposal
Description
- This project will enhance the NZDF's Improvised Explosive Device Disposal (IEDD) capability and develop a credible Improvised Explosive Device Disposal - Chemical, Biological and Radiological (IEDD-CBR) capability.
Policy Value
- An IEDD and IEDD-CBR capability is part of the NZDF's role to counter any threat posed by terrorism or acts of sabotage. The NZDF is an essential component of the wider whole-of-government approach to an IEDD or IEDD-CBR emergency, which is managed by the New Zealand Police. The potential consequences of IEDD incidents range from limited, but costly, inconvenience and disruption of activities through to loss of life if an explosive device was to detonate.
Capability Gap
- The existing IEDD capability is derived from the inherent skills of Ammunition Technical Officers, who have a call out capability but who have limited training for extreme circumstances and who have had limited equipment. The types of terrorist threats that now exist require a more deliberate response. There is a high risk of policy failure without this capability. The ability for New Zealand to host internationally significant events will be limited unless New Zealand can guarantee a level of protection against terrorist action.
Links to other Capabilities
- This project has links to the following projects and capabilities:
- Land Intelligence Surveillance Reconnaissance
- Army Engineering Equipment
- Special Operations Capability
Current Status
- This project is underway with staff being employed and equipment procured.
Cost
- The project will cost around $22 million. The estimated life, in service through life costs, and the total cost of ownership are to be confirmed.
P-3 Mission Management, and Communication, and Navigation Systems Upgrades
Description
- This project is upgrading the mission management, communications, and navigation systems required for the P-3 Orion maritime patrol aircraft to conduct surface surveillance tasks.
Policy Value
- The capability provided by the P-3 is central to meeting a broad range of civilian roles and tasks and for many functions required of the NZDF across the range of the Government's five defence policy objectives. The P-3 undertakes surveillance of New Zealand's EEZ and the Southern Ocean, meets our South Pacific search and rescue obligations, and provides surveillance assistance to South Pacific nations. The P-3 has a high utility for a wide range of civilian and military operations. It is one of the primary force elements contributing to our defence relationships with Australia and Five Power Defence Arrangements (FPDA) partners.
Capability Gap
- The obsolescent systems onboard the P-3 are limiting availability for surveillance flights and other missions due to repeated equipment failures. Without an upgrade, there could be policy failure in not meeting the objectives for EEZ and Southern Ocean surveillance and assisting South Pacific countries with surveillance of their EEZs. There could also be difficulties in meeting commitments to Australia and the FPDA.
Links to other Capabilities
- This project has links to the following projects and capabilities:
- Patrol Vessels
- Multi-Role Vessel
- Land Intelligence Surveillance Reconnaissance
- Joint Command and Control System
- NZDF Torpedo Replacement
- P-3 Air-to-Surface Weapons
- P-3 Self-Protection
- ANZAC Class upgrades
Timing
- In October 2004 a contract was awarded to L-3 Communications Integrated Systems of the USA as the prime contractor for the project. Design development continues with the prototype being prepared for the installation of new equipment.
- The first upgraded aircraft is expected to be delivered in 2008, with fleet modernisation complete in 2010.
Current Status
- Upgrade work on the aircraft has commenced.
Costs
- The upgrade is expected to cost around $373 million. The estimated life, in service through life costs, and the total cost of ownership are to be confirmed.
C-130 Life Extension
Description
- This project will extend the life of the C-130 aircraft by upgrading the avionics and aircraft systems and undertaking some structural refurbishment work.
Policy Value
- The C-130 is a critical enabler for many NZDF operations. It provides essential air transport for the deployment of NZDF personnel and equipment within New Zealand, to the South Pacific, Australia, the Asia-Pacific region and globally. Air transport is a critical capability for a number of roles and tasks, including: supporting counter-terrorist operations; peace support operations; evacuations of New Zealanders from trouble spots; disaster relief and humanitarian operations; undertaking tasks within New Zealand; and supporting New Zealand's Antarctic programme. The C-130 has particular utility where runways are short or in poor condition.
Capability Gaps
- The declining availability of C-130 air transport is a major capability gap that will increasingly impinge on the NZDF's ability to deploy and support personnel. This is due to the age of the airframe and systems. There is a risk of policy failure, particularly in the New Zealand, South Pacific and Asia-Pacific contexts, if this project is not carried out, as the NZDF would not have sufficient air transport to support deployments and perform other tasks.
Links to Other Capabilities
- This project has links to the following projects and capabilities:
- Boeing 727 Replacement / Boeing 757 Modification
- Special Forces Capabilities
- C-130 Self-Protection
- Deployment of other capabilities
Timing
- The first upgraded aircraft is expected to be delivered in 2007, with fleet modernisation complete in 2010.
Current Status
- In December 2004 a contract was awarded to L-3 Communications Spar Aerospace of Canada as the prime contractor for the project. The prototype aircraft has been stripped in preparation for the upgrade.
Cost
- This project is expected to cost around $234 million. The estimated life, in service through life costs, and the total cost of ownership are to be confirmed.
New Defence Headquarters Building
Description
- This project will provide new Wellington accommodation for the Defence organisations.
Policy Value
- The new Defence Building will accommodate the Defence organisations in modern facilities.
Capability Gap
- The lease on the current Defence building will expire in March 2007 and the Defence organisations are required to relocate.
Timing
- The relocation to the new leased accommodation is expected to be completed by February 2007.
Current Status
- The Chief of Defence Force (CDF), on behalf of the Defence organisations, has negotiated development and lease agreements with Capital Properties Limited, for the construction of a 18,300m2 commercial standing office building, modified to accommodate tenant specific requirements. The Defence organisations are funding tenant specific requirements for the building and fit out. Construction of the building is now being completed and soft fit out undertaken.
Costs
- The estimated cost to the NZDF of fitting out the new building is $23 million. The estimated life is 18 years, in service through life costs are $120 million, and the total cost of ownership is $140 million.
NZDF Medium Utility Helicopter Capability
Description
- This project will replace the Iroquois utility helicopters with a capability that meets the NZDF's contemporary needs for a medium utility helicopter.
Policy Value
- Utility helicopters provide essential support to the Army, particularly in the South Pacific and in peace support operations. Helicopters are also important for supporting police operations in New Zealand and providing a range of support functions within New Zealand and the South Pacific, such as search and rescue and disaster relief.
- The introduction into service of the MRV will create an additional role for utility helicopters in supporting the Army ashore, especially in the South Pacific.
Capability Gap
- The Iroquois can no longer provide the capability required by a modern, mobile land force. These aircraft are becoming increasingly difficult to support because of their age. With helicopters assuming greater importance for mobility and tasks in peace support operations, there is a risk that the Army will be unable adequately to perform its policy roles and tasks if the Iroquois is not upgraded or replaced to meet current requirements.
Links to other Capabilities
- This project has links to the following projects and capabilities:
- Training/Light Utility Helicopters
- Special Operations Capabilities
- Multi-Role Vessel
- Army Capabilities
Timing
- The replacement for the Iroquois is planned for entry into service in 2010 and will be fully in service by 2013.
Current Status
- Cabinet has signed a contract with NH Industries for eight NH90 helicopters as the replacement for the NZDF's Iroquois helicopters.
Costs
The fleet of eight NH90 medium utility helicopters will be procured for a total of $771 million which includes logistics and support. The estimated life, in service through life costs, and the total cost of ownership are to be confirmed.

