Fines for Taiwan shipbuilder mount over delayed submarine delivery

Taipei, Dec. 10 (CNA) CSBC Corp. has been accruing fines since last month after missing the contractual delivery deadline for Taiwan's first domestically built defense submarine, Navy Chief of Staff Chiu Chun-jung (邱俊榮) said on Wednesday.

"Fines have been tallied since November after the delivery date passed," Chiu said at a Ministry of National Defense press conference, responding to a CNA query regarding penalties imposed on the shipbuilder.

CSBC is the main contractor for the prototype of Taiwan's indigenous defense submarine, the Narwhal, or Hai Kun in Chinese.

The total amount of fines will depend on the number of days that elapse before CSBC hands the submarine over to the Navy and will be deducted from the remaining payment for the vessel, Chiu added.

Defense Minister Wellington Koo (顧立雄) said in October that CSBC will be fined about NT$190,000 (US$6,091) per day until the Narwhal is delivered.

Asked to estimate the length of the delay, Chiu said testing of the submarine is currently at least two months behind schedule, but he did not provide a more specific timeframe.

The Narwhal, which completed its float-out on Nov. 28, is now undergoing fine-tuning and preparations for submergence trials, Chiu said.

"Submergence trials will be scheduled once safety requirements are confirmed through review," he said, emphasizing that all parties involved are working tirelessly to complete the vessel in accordance with established procedures.