about us | newsletter | contact | archive | members area
Bogdan Nitulescu, Tremend
Cryptocurrencies volatility is a big problem»
  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  |  13236 Views
Daily Info
OTP Bank Romania to double its IT team to support its digital development plans

OTP Bank Romania will double its IT team in order to support its digital development plans for next year.

Black Sea Oil & Gas signs the gas sales agreement with Engie for natural gas supply from the MGD project

Black Sea Oil & Gas together with its co-venture partners, Petro Ventures Resources and Gas Plus International, announced the signing of the gas sales agreement with Engie thr...

Bucharest Stock Exchange and other capital market representatives establish the Romanian Investor Relations Association

Companies listed on the Bucharest Stock Exchange (BVB), those with potential to become listed companies jointly with funds managers and Investor Relations (IR) professionals f...

GapMinder fund invests in FintechOS, a start-up that develops AI solutions for the financial services industry

FintechOS, a company specializing in accelerating the digital transformation of financial institutions, has attracted 600,000 Euro of funding from the GapMinder investment fun...

The Romanian labour market needs a well-thought approach, says FIC

The Foreign Investors Council (FIC) has signaled in the past 2-3 years that its members are anticipating increasing strains on the Romanian labour market because starting with...

 
 
   
advertising

advertising

advertising

More on News
ArcelorMittal receives binding offer for European assets from Liberty

British-owned Liberty announced a conditional agreement to buy four European steel plants, employing more than 12,500 people.

The Romanian labour market needs a well-thought approach, says FIC

The Foreign Investors Council (FIC) has signaled in the past 2-3 years that its members are anticipating increasing strains on the Romanian labour market because starting w...

EBRD cuts economic growth forecast for Romania

Romania's economy will grow by 4.2 per cent this year and by 3.6 per cent in 2019, according to the most recent forecast released by the European Bank for Reconstruction an...

Black Sea Oil & Gas and Transgaz sign 15-year contract for the MGD Project gas production transmission into the NTS

Transgaz and Black Sea Oil & Gas signed the gas transmission contract for the transport of the Midia Gas Development Project (MGD Project) production into the National Tran...

Corina Popescu is the new CEO of Electrica

The Board of Directors of Electrica, one of the most valuable companies where the state is the main stakeholder, has agreed to end the collaboration with its CEO Dan Catali...

Black Sea Oil & Gas signs the gas sales agreement with Engie for natural gas supply from the MGD project

Black Sea Oil & Gas together with its co-venture partners, Petro Ventures Resources and Gas Plus International, announced the signing of the gas sales agreement with Engie ...

Romgaz posts a net profit of 1.02 billion RON in the first nine months of 2018

Romania's natural gas company Romgaz posted a net profit of 1.02 billion RON in the first nine months of 2018, a decrease of 14 per cent compared to the year-ago period. To...