Destroyer goes on projects of concern list

The government has added the troubled new destroyer program to the shame file list of "projects of concern".

That's a group of defence acquisition projects running late or over-cost estimates, or at risk of failing to deliver the required level of capability.

Defence Minister David Johnston said the air warfare destroyer (AWD) project would go on the list as part of the plan to address increasing risks outlined in a review by former US Navy secretary Professor Don Winter.

He said the government was taking decisive action.

"The air warfare destroyer will be a central component of the Navy's future surface capability. For this reason it is critical that we get this important project back on track," he said in a statement.

The $8.5 billion AWD project - to build three of the advanced warships - is now running almost two years late and is costing $360 million more than planned, with shipbuilders performing well below international standards.