rss icon Subscribe
desktop mobile

Germany Vows to Reach 'Fair Contract' for New Warships

Posted by Eric Haun

German Defence Minister Ursula von der Leyen vowed on Friday to press a consortium led by Luerssen Werft of Bremen for a "fair contract" for five new warships, saying the group's initial bid was too high.
"My goal is to get the contract started in this legislative period, but we want a good contact, we want a fair contract and above all a realistic one," von der Leyen told reporters on Friday. "We are working hard on that now."
Asked if there was any chance the consortium's reported initial bid of 2.9 billion would be accepted, von der Leyen said, "I can state clearly that that number will not stand."
Defence industry sources said last week the German government had rejected the initial bid from the consortium before it exceeded the budget target of 1.5 billion euros ($1.59 billion).
The Handelsblatt newspaper reported this week that the bid came in at 2.9 billion euros, nearly twice the expected amount.
German lawmakers first announced plans in October buy five more of the warships to bolster security in the Baltic Sea and the Mediterranean.
Critics have warned that the ministry's decision to skip an open competition could lead to higher costs. They also question the government's plan to secure parliamentary approval for the planned purchase as soon as June.
Germany is boosting military spending by nearly 2 billion euros in 2017 to 37 billion euros, or around 1.2 percent of gross domestic product, but says it will take time to reach the NATO target of spending 2 percent of GDP on defence.


(Reporting by Reuters TV and Sabine Siebold; Writing by Andrea Shalal; editing by Ralph Boulton)

Apr 21, 2017

 

Contracts

GE Transportation to Supply Freight Locomotives to Ukraine in USD 1bln Deal

Photo: GE Transportation

GE Transportation signed a $1 billion framework agreement in Ukraine, marking a major milestone

Nordic American Tankers Signs TC with Major Oil Firms

Photo: Nordic American Tankers

In the autumn of 2017, Nordic American Tankers (NAT) advised you of our time charter

Djibouti Ends Dubai's DP World Contract to Run Container Terminal

Photo: DP World

Djibouti has ended a contract with Dubai's DP World, one of the world's biggest port operators

Eye on the Navy

USNS Hershel 'Woody' Williams Delivered

(Photo: General Dynamics NASSCO)

The fourth expeditionary sea base vessel, USNS Hershel “Woody” Williams, was delivered to the U.S.

Rolls-Royce to Equip UK Navy's Type 26 Warships

The Rolls-Royce Mission Bay Handling System (Rolls-Royce)

Rolls-Royce Canada said it has won a contract with BAE Systems for its mission bay handling

Fincantieri Lays Keel for Italy’s New Amphibious Unit

(Photo: Fincantieri)

A keel laying ceremony of the multipurpose amphibious unit (LHD or Landing Helicopter Dock) was

Maritime Apps