Monthly archive for July 2019

IN ROMANIA NAVAL GROUP FINALLY WINS THE CONTRACT FOR FOUR MULTI-ROLE CORVETTES

According the Romanian press, Naval Group has been today declared as the winner with its partner (Constanta Shipyard SA – SNC) of the tender for the construction of four new multi-role corvettes.

Romania was pursuing a dual track of upgrading the two Broadsword (Type 22) class frigates (acquired from the UK in 2004) and acquiring four new multi-role corvettes to replace its FF Tetal and FF Tetal Improved.

The total cost of the program was estimated at €1.6 billion, and included the acquisition of ammunition (not the helicopter), initial logistic support, crew training, site collaboration (training center), offset agreements.

Romtehnica SA, which organised the tender, awards the contract to Naval Group which offered the lowest bid €1.2 billion (compared to €1.25 billion for Damen and €1.34 billion for Fincantieri).

The procedure was delayed for months due to several administrative and judicial issues. On 8 June, Defense Minister Gabriel Leş dismissed Andrei Ignat, state secretary of the Armaments Department, to overcome the situation. According to sources from the Ministry of National Defense (MapN) and quoted by the Romanian press, Andrei Ignat was supposed to have close links with former PSD president, Liviu Dragnea,who was convicted of arranging payment for two party members employed in fake jobs and paid by a state agency and was was sent to prison for three and a half years in May 2019.

Meanwhile, the end of the litigation at the Constanta Court of Appeals, through which Constanta Shipyard, as part of the “Association between Naval Group France and Constanta Shipyard SA”, requested the cancellation of the legal act “GD no. 48/2018 ” has also helped as well as the withdrawing of Fincantieri’s appeal in this procedures.

This victory is also a success for MBDA France which will equip vessels with Exocet MM40 Block-3 anti-ship missiles as it has also been declared the winner for the Coastal Batteries Programme. Indeed MBDA France was the sole contender for the acquisition contract of Mobile Missile Launchers Systems (SIML) with an estimated value of €137 million (VAT excluded).

 

Written by Julien Brugnetti (Senior Analyst) for OIDA Strategic Intelligence

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