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The expected cost is so astronomical, in fact, that the Navy, frightened that this expenditure will prevent it from paying for other portions of its shipbuilding program, has insisted that the money come from a special fund outside of its budget.
Its precarious financial state bodes ill for the future of its shipbuilding business.
It suffered heavily from German bombing during World War II, and the collapse of its shipbuilding and other heavy industries in the decades after the war caused economic hardship.
Together they have transformed a city which in the early 1980s was in such a deep slump after the collapse of its shipbuilding industry that one in seven inhabitants packed their bags and left, bringing the population as low as 230,000.
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South Korea, accused by the European Union of unfairly subsidizing its shipbuilding industry, responded with a complaint of its own, charging that European countries are the ones subsidizing shipbuilders.
In the southeast Clydebank, the largest town, suffered severely from the virtual collapse of its historic shipbuilding and heavy engineering industries in the decades after World War II.
When it was regarded as the second city of the Empire at the end of the 19th century its shipbuilding output accounted for more than half of the UK's and it was making a quarter of the world's locomotives.
Russia's machine-building industry provides most of the country's needs, including steam boilers and turbines, electric generators, grain combines, automobiles, and electric locomotives, and it fills much of its demand for shipbuilding, electric-power-generating and transmitting equipment, consumer durables, machine tools, instruments, and automation components.
VT also points out that the cash element of Babcock's offer largely comes from the sale of its own BVT shipbuilding arm.
The subcontractor, German Naval Yards Kiel, is listed on Privinvest's website as a member of its major international shipbuilding group, which has a presence in 40 countries.
I feel faintly equivocal about the news that Portsmouth may have seen the last of its days as a shipbuilding site – not least because it pains me, being Southampton-born and bred, to acknowledge that Portsmouth lies at the very centre of modern British history.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com