about us | newsletter | contact | archive | members area
ADRIAN MARIN, UNSAR
There will be industries or economic sectors that will benefit from these technological »
  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  |  11011 Views
Daily Info
Ratio between pensioners and employees could double by 2032 as compared to 2014, pension fund manager says

The ratio between pensioners and employees could double by 2032 as compared to 2014, which will cause problems in covering the necessary pension payments by the employees for ...

Damages to electricity networks caused by severe weather conditions do not increase the distribution tariffs, says ACUE

Lately, Romania confronted with extreme, unpredictable meteorological phenomena that have caused major damages, in large areas, to electricity distribution networks.

Orbis turnover increased to 62 million Euro in Q1

The Orbis Hotel Group turnover increased by 4.4 million Euro in Q1 2017 up to 62 million Euro, a press release shows. Group's EBITDA in the first quarter totalled 8.9 millio...

Deloitte Romania appoints Alexandru Reff as new country managing partner

Alexandru Reff has been appointed country managing partner Deloitte Romania and Moldova, effective June 1, 2017. He will succeed Ahmed Hassan, who takes on a regional leadersh...

Cushman & Wakefield Echinox expands its retail department with new appointment

Cushman & Wakefield Echinox consolidates its retail team by recruiting Dana Radoveneanu, a specialist with six years of experience of the local retail market, a press release ...

 
 
   
advertising

advertising

advertising

advertising

More on News
Iohannis: I explained to EU leaders multi-speed Europe is not a good solution, could end in split-up

President Klaus Iohannis, speaking after the European Council's meeting, said that he explained to EU leaders that a multi-speed Europe is not a good solution and that in e...

BRUA pipeline to operate in 2020 when Exxon, Petrom will extract Black Sea gas

The works at the BRUA (Bulgaria - Romania - Hungary - Austria) pipeline will start at the end of 2017, and the gas pipeline will become operational in 2020, when ExxonMobil...

Ninety-seven per cent of household waste ends up in landfills, says ARBIO

As much as 97 per cent of Romania's household waste ends up in landfills, and Romania could be fined starting in 2020 about 500,000 Euro per day if it fails to bring the nu...

Net investment in national economy, down 3.3 per cent in 2016

Net investment carried out last year in Romania's national economy stood at 70.281 billion RON (15.6 billion Euro, declining 3.3 per cent from 2015, according to data relea...

Romania has significant potential in agriculture, but low productivity, says PwC Romania

Romania is one of the European countries with the highest potential in agriculture with the sixth biggest agricultural use area in the EU, but it has a low productivity due...

Commercial property investments in Romania exceeded 850 million Euro last year, says DTZ

In 2016, the total volume invested in commercial property in Romania exceeded 850 million Euro, a DTZ Echinox report shows. Bucharest attracted 660 million Euro, which repr...

PM Grindeanu: We must back European project strengthening, not multi-speed Europe

Romania's consistent stance - whether expressed by the country's Presidency, government or Parliament - on the future of the EU in the Brexit context is to support the stre...