A Spanish design for Australia's new fleet of frigates could be the cheapest option.
Three foreign shipbuilders in the running to design Australia's new frigates are awaiting a decision expected in coming weeks.
The UK's BAE Systems with its Type 26, Fincantieri of Italy with its FREMM and Navantia of Spain with an updated F100 are vying for the $35 billion Future Frigate program contract.
Ahead of a federal government announcement, the Australian Strategic Policy Institute has released a report examining the contenders using publicly available information.
The report estimates the Spanish frigate would likely be the lowest cost option followed by the Italians, and the British ship would be most expensive.
Navantia has the advantages of workforce experience from the Air Warfare Destroyer project, and a commonality with other ships already in service in the Australian navy, the report says.
"The Navantia vessel is almost certainly the least risky of the three contenders," the report says.
Navantia's design is based on Spanish frigates commissioned in 2002 and the AWDs.
The British ship's advanced capabilities and design make it "most risky" to start on here, the report says.
The report acknowledges the BAE is building frigates for the British navy but they won't be operational until 2027.
A double helicopter hangar is a major selling point on the Italian ship, the report says.
The report says the fact the Italian's ship is already in service is offset by the fact Australia is unlikely to want to use their sensor and weapons systems.
Fincantieri and Navantia are in the running to build the US Navy new frigates.
While BAE and Navantia are bidding for a Canadian government frigate project.
The report says allies buying frigates offers up the possibility of global economies of scale.
"Being the first of the countries to make a choice means that Australia doesn't have the benefit of knowing which designs the Canadians and Americans will choose," the report says.
However, the companies could be using Australia to leverage their success in other competitions, which meant there was scope to extract favourable concessions on intellectual property and industrial arrangements.
The new frigates will replace the Anzac-class from the mid-2020s, in a project that will create more than 2000 jobs.
Production is scheduled to start from 2020 at the federal government-owned shipyard in Osborne, South Australia.
