British defense giant BAE Systems PLC (BA.LN), Italy‘sFincantieri SpA (FCT.MI) and Spanish shipbuilder Navantia have been shortlisted by Australia as part of a 40 billion Australian dollar (US$31 billion) naval modernization that will be a centerpiece of Prime Minister Malcolm Turnbull‘s pitch in looming elections.

All three companies had been asked to refine designs for nine new frigates to be built at a cost of A$35 billion in South Australia state, which will be a key election battleground in a vote expected as soon as July 2, Mr. Turnbull said Monday.

Also, Mr. Turnbull said Western Australian shipbuilder Austal Ltd. (ASB.AU), which builds Littoral Combat Ships for the U.S. Navy, had won a separate A$900 million contract to build smaller patrol boats for tiny Pacific islands nations.