Design and manufacturing contracts were awarded to Siemens, Noske-Kaeser, Australian Marine Technologies and ThyssenKrupp Marine Systems Australia.

"The ANZAC Platform Systems Upgrade contracts will allow the navy to leverage-off the technology developments that have been made over the past 20 years," Mapp said.

Work includes improvements to the ships' overall management systems as well as heating, ventilation air conditioning units to boost automatic control and monitoring. Importantly, it will allow the ships to operate better -- and give better working and living conditions to sailors -- in a wider range of climate extremes.

"Our navy works closely with other countries and is a valued international partner in our region's security arrangements," Mapp said. "This upgrade in our frigates' capability will improve the performance and extend the range of conditions in which they are effective."

The upgrade work will be carried out in New Zealand as well as Australia, Canada and Germany.

The Te Kaha and Te Mana are two of the 10 ANZAC class frigates built in Australia by Tenix Defense Systems in Williamstown, and the only ANZAC vessels serving with the New Zealand navy.

Te Kaha was laid down in 1994 and commissioned into the RNZN in 1997, followed by the Te Mana, launched in 1997 and commissioned in December 1999. The 387-foot-long ships with ranges of more than 7,000 nautical miles are "the mainstay of the navy's combat force," the Defense Ministry said.

They have a 5-inch gun, torpedoes, air defense missiles and close-in weapons systems for self-defense. The frigates also carry a Kaman Aerospace SH2G Seasprite helicopter armed with air-to-surface missiles.

Since late 2009 both ships have undergone upgrades, including major engine work during the first phase.

The propulsion upgrade included Babcock Fitzroy replacing the ships' diesel engines, and related power and cooling systems, with more powerful units that deliver better fuel efficiency. The ships were in dry dock for the engine project that required hull plating to be removed to exchange the engines.

Extra power is needed because the ships' upgraded systems add weight -- as do the expanded facilities for the increase in crew numbers -- to the vessels, a Defense Ministry document explained.

"The most noticeable change is the partial enclosing of the quarterdeck," the document said. "This has reduced the overall area on the quarterdeck but has created additional internal space. Creating the internal space has increased the reserve buoyancy in the after sections of the ship improving the ANZACs' (ships') ability to withstand damage in this area."

Crew also benefit from some added comforts. A gymnasium is planned as well as an expanded laundry area.

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