Posted on 10/29/2010 4:15:05 AM PDT by sukhoi-30mki
Poland to renegotiate Norwegian missile contract?
25.10.2010 13:56
CORRECTION – Poland’s Defence Ministry is to renegotiate a contract for the purchase of anti-ship and land attack missiles from Norway’s Kongsberg Defence and Aerospace company.
In December 2008, Poland’s Defence Ministry signed a contract for 12 Naval Strike Missiles (NSM) plus additional equipment including missiles launchers, transport and communication vehicles.
The contract was worth 430 million zloty (109 million euro).
In January 2009, Konsberg received a down payment amounting to 134 million zloty (34 million euro). However, several months later the government in Warsaw introduced budget cuts and the Defence Ministry stopped paying further installments.
In exchange for not paying in 2009 and 2010, Poland’s armed forces agreed to order a additional 36 missiles worth 300 million zloty (76 million euro) meaning 2011 Poland will have to pay about 570 million zloty (144 million euro) in 2011.
The government has raised concerns that the missile system, having failed tests, may not be worth the outlay at a time of decreasing expenditure.
“We don’t want to buy a pig in a poke,” says Deputy Defence Minister Marcin Idzik.
Gazeta Wyborcza writes that the contract will be probably renegotiated by the government. If the missiles prove well in tests then the new contract will be worth more to the Norwegian company than originally agreed. (mg/pg)
Correction – This article originally stated that the government wanted to annul the contract completely. This was not true, says the Kongsberg Defence and Aerospace company.
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