Four companies submitted bids for building new Estonian Navy vessels

South Korean Hanwha and Hyundai, Swedish Saab, and Estonian Baltic Workboats have submitted initial bids for building new Estonian Navy vessels. Negotiations are expected to conclude by the end of the year. Meanwhile, two of the Navy's three minesweepers and one of its patrol vessels are currently undergoing maintenance.

The acquisition process for the Estonian Navy's new vessels has reached its first milestone, with four potential builders submitting their initial bids to the Defence Investments Centre (RKIK).

Who submitted bids?

South Korean defence industry giants Hanwha and Hyundai, Swedish defence concern Saab, and Estonian company Baltic Workboats have responded to the call for proposals. Marek Mardo, the Navy category manager at RKIK, explained that the data collected so far is still preliminary.

"We asked for indicative pricing and delivery times. After that, we will review what these prices were based on, consult with the bidders, draw our own conclusions, and possibly revisit the technical and functional requirements, then continue discussions with the companies in the next phase," said Marek Mardo.

According to plan, Estonia intends to acquire four new vessels over four years-two for operations near coastal areas and two larger ones for open-sea operations. Defence Minister Hanno Pevkur has previously emphasised that the vessels should be built in cooperation with foreign partners, but in Estonia. Mardo confirmed that the local production requirement is up to 30 per cent and will be specified in the second phase of negotiations.

Current situation of the Navy

Meanwhile, the Navy is facing significant challenges, with three vessels out of service at the same time. The patrol vessel Raju is stationed at Pärnu dock, having suffered damage to its propellers during routine maintenance when they were lifted from the water. The minesweepers Admiral Cowan and Sakala await repairs at Miini Base: Admiral Cowan sustained ice damage over winter, while Sakala experienced a fire or compartment flooding with smoke, and the electrical systems sustained water damage during extinguishing efforts.

The head of the Defence Ministry's Defence Readiness Department, Gert Kaju, stressed nonetheless that the Navy's operational capability has been maintained.

"Since we still have vessels, our operational capability has been maintained, even though we currently have three ships out of service. But we have one back from the Uganda mission. And similarly, General Kurvits and other vessels," said Kaju.

Ugandi replaced the damaged Cowan

The minesweeper Ugandi was on a three-month deployment with NATO's standing mine countermeasures group, replacing the recently damaged Admiral Cowan. Ugandi and Wambola managed to break through Estonia's ice cover while sailing to Germany for exercises in February, but Admiral Cowan did not fare as well and sustained ice damage.

According to RKIK, the entire procurement process must be completed by the end of 2026.