about us | newsletter | contact | archive | members area
OCTAVIAN ARON, PUBLIC MANAGERS TRADE UNION
Both the private and public sectors have strengthened their knowledge and accumulated ex»
  News:      POLITICS   |   ECONOMICS   |   ENERGY   |   INVESTMENTS   |   APPOINTMENTS   |   GREEN   |   INFRASTRUCTURE   |   REAL ESTATE   |   AGRIBUSINESS   |   DRIVING   |   CITY LIFE   |   EVENTS   |

Wikileaks: sole-source route sought for F-16 fighter sale

US defence business and Romanian officials sought a sole-source route for the sale of F-16s to Romania, according to a US Embassy cable released by Wikileaks from November 2007

February 2011 - From the Print Edition

As a condition of joining NATO in 2004, Romania needed to upgrade its Soviet-era MiG-21 Lancer Aircraft through purchasing a new air combat force, with the other major bidders including Sweden’s Saab-manufactured JAS 39 Gripen and the Italian-British-German-French Eurofighter Typhoon.
The cable, attributed to then-US Ambassador to Romania Nicolas Taubman, stated that American aerospace company Lockheed Martin, along with “allies in the Presidency and Ministry of Defense” were seeking a ‘sole-source’ route to the fighter plane decision. The cable revealed American frustration with EU policy regarding open auctions, implying that US business preferred direct deals with central Government, rather than those which are based on free market principles.
The cable alleged that Lockheed Martin and its Romanian ‘allies’ did not want to see the deal “tied up” in the Brussels bureaucracy by the F-16’s principal European competitors, Gripen and Eurofighter.
“This was always going to be a tricky exercise, with an expectation that supporters of a European fighter option would loudly cry foul,” stated the cable.
In 2004, US infrastructure firm Bechtel also won a ‘sole-source’ contract to build the 415 motorway Autostrada Transilvania, in a controversial deal criticised by the EU.
In March 2010 Romania pledged to purchase 24 second-hand F-16s, with the main part of the deal being Lockheed Martin’s maintenance costs and the fee for the jets’ modernisation. The purchase was estimated to cost one billion Euro.
In May 2010, the Swedes presented to lawmakers an offer for 24 new Gripen planes at the same price as the 24 American F-16 Block 25 planes, but with the Swedish offer also including financing and offset.
The Eurofighter consortium then presented a proposal to parliament for 24 slightly-used EF Tranche 1 planes.
The parliament’s defence committees wrote to the Government, asking it to run a competitive and transparent acquisition process for the fighters.
On the principle of sole-source procurement, Gripen-owned Saab issued a statement detailing: “We firmly believe that running an open and transparent fighter procurement tender will ensure that the best product, the best industrial package and the best price is achieved. This is without any doubt of the utmost importance to decision makers, operators and taxpayers. Tenders are strongly encouraged for public procurement programmes of this nature by the EU.”
Last August the Romanian Government was due to pay the 750 million USD in the first tranche for the acquisition for the F-16s, but has since failed to come up with the money.
For the next three years the Government has not allocated any budget to pay for the planes.
Boeing F/A-18E/F Super Hornet and France’s Dassault Rafale were also in the race for Romania’s military purchase



COMMENTS
There are 2 comments:

segess: on 2011-05-01 09:23:10
egs4gsegs

 
ADD A COMMENT
 
Name
Email
Comment
Validation Code
   
 
 

2 Comments  |  9997 Views
Daily Info
Dan Ivanov joins the valuation department of DTZ Echinox

DTZ Echinox growth the valuation department with the 15-year valuation background consultant Dan Ivanov, to hold the position of senior valuer-business development within the ...

The market for mergers and acquisitions in Romania went up at over three billion Euro in 2015

The value of mergers and acquisitions signed last year in Romania increased up to 3.071 billion Euro from 2.240 billion Euro in 2014, this being the highest value recorded in ...

Schneider Electric gets its highest score ever in the 2016 Global 100 Most Sustainable Corporations in the World

Schneider Electric, the global specialist in energy management and automation, has been recognized as one of the 2016 Global 100 Most Sustainable Corporations in the World, c...

INS: Romanian primary energy resources up by 2 per cent, electric energy up by 7.8 per cent in 2015

Romanian main primary energy resources increased by 2pct year-on-year to 32.873 million tonnes of oil equivalent (toe), and electric energy resources by 7.8pct YOY to 69.373 b...

Gondola Sinaia launches the 1400-2000 segment with 9 million Euro investment

The municipality of Sinaia announced the launch of a new segment, between 1400 and 2000m altitude, linking the two ski slopes at Cota 1400 and Cota 2000.

 
 
   
advertising

advertising

advertising

advertising

advertising

More on News
PM Dacian Ciolos consulted the parties on the local mayoral elections

The discussions run by Prime Minister Dacian Ciolos and the major parties’ representatives regarding the organization of this year’s local mayoral elections started in ...

MFE to plan training sessions to increase administrative capacity of public and private beneficiaries

One of the weakness of the 2007-2013 programming period that hindered the proper absorption of EU funds was the limited administrative capacity of the beneficiaries. Thus t...

European Union to allot Transgaz 179 million Euro for the Bulgaria-Romania-Hungary-Austria pipeline construction

In late January, the European Union (EU) allocated 179.3 million Euro for the development of the Romanian section of a gas pipeline between Bulgaria and Austria, which will...

Subway is launching a new restaurant in Bucharest

One of the biggest chains of restaurants in the world, Subway, expanded its business in Romania in late January by opening a new restaurant near Militari Shopping Centre an...

CNADNR rejects all feasibility offers for Comarnic-Brasov auction

The National Company for Motorways and National Roads (CNADNR) rejected in mid-January seven tenders competing within an auction referring to the resuming of a feasibility ...

1 Comment

John Oldham

Craiova-based Ford factory has a new general manager, John Oldham, with a 35-year experience at Ford Great Britain and Ford Europe and who has been assistant production man...

Can-Pack Romania invests in intelligent collection devices of aluminium cans

Can-Pack Romania, the only producer of aluminium cans in Romania, plans to invest 200,000 Euro in order to install during this year 21 intelligent collection devices of alu...