BAE reaches settlement with Trinidad and Tobago after two years

Following an announcement two years ago from BAE Systems saying that the government of Trinidad and Tobago (GORTT) wished to cancel an offshore patrol vessels (OPVs) contract, the defence company has finally said that the two parties have reached a settlement.

On September 21st 2010, GORTT said that it wanted to drop the contract, entered into in April 2007, which would see BAE's subsidiary VT Shipbuilding provide three OPVs.

At the time, BAE was ready to deliver the first ship, but the programme had suffered from delays and cost overruns, leading the group to take a £100m charge to terminate the contract.

Start your trial of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

The three OPVs were subsequently sold to the Brazilian Navy under a contract signed in December 2011 and the first ship was handed over to the Brazilian Navy in June this year, BAE announced on Wednesday.

BAE has now reached agreement on a settlement with GORTT, saying: "The settlement with GORTT is at an amount consistent with provisions held."