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Analysis: European defense contracts

Outsourcing the answer for EU forces, commander says; China buys 150 Polish helicopters; U.S. will upgrade Poland's military equipment in exchange for missile shield OK; Bumar signs $1.2B defense deal with India; EADS sells air-to-air tanker to Emirates
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Published: March. 3, 2008 at 1:00 PM
By LEANDER SCHAERLAECKENS
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BRUSSELS, March 3 (UPI) -- Outsourcing the answer for EU forces, commander says

In order to fill critical logistical gaps in EU forces' crisis-management missions, the best solution could be provided by outsourced logistics contracts to the private sector, Henri Bentegeat, chairman of the EU Military Commission, said at a European Defense Agency conference.

Although the private sector already plays a sizable role in many missions, chiefly in supplying services such as catering and fuel, the EU forces would benefit from an increase in that support. Aside from being a more financially efficient service than the one armed forces can provide for themselves, outsourcing logistical tasks frees up much-needed manpower for actual military duty.

Javier Solana, high representative of the common foreign and security policy, secretary-general of the European Council and subsequently head of the EDA, called for closer cooperation between the private sector and the defense policymakers in order to ensure that such an expansion of outsourcing wouldn't occur at the expense of the forces' ability to react swiftly to emerging threats or humanitarian crises.

Following the EU forces' epic struggle to find the necessary transport and battle helicopters for their mission in Chad, a panel at the conference suggested that transportation, not traditionally an outsourced service, now also be considered for contracts with the private sector.

Solana also reiterated the importance of interoperable equipment between countries.


China buys 150 Polish helicopters

The Chinese government has signed a 10-year contract for 150 helicopters and approximately $500 million with Poland's partially state-owned PZL Swidnik, Rzeczpospolita reported.

Under the terms of the contract, some of the helicopters will be delivered complete and some will be assembled in China where the ground is being prepared for a production plant.

The contract is a loose one that will allow China to tailor its annual shipment of helicopters from a choice of three models.


U.S. will upgrade Poland's military equipment in exchange for missile shield OK

The U.S. government has declared itself prepared to acquiesce to Polish demands in the missile shield negotiations, according to Defense News.

The United States is keen on Polish cooperation, but Warsaw has been adamant on compensation for irking Russia.

The missile-shield plan calls for 10 interceptor missiles on Polish territory and a tracking radar on Czech land. The construction is to be complete in four years.

Poland has its eye on the Patriot 3 and THAAD anti-missile systems and will likely also ask for a $20 billion military aid package and a bilateral security agreement, Defense News reports.


Bumar signs $1.2B defense deal with India

Polish state-owned Bumar signed six contracts to supply India with armored cars, anti-mine vehicles, movable anti-aircraft equipment and self-propelled cannons, according to Polish newspaper Dziennik.

The six contracts are believed to be worth $1.2 billion. Negotiations are ongoing on additional contracts.


EADS sells air-to-air tanker to Emirates

The United Arab Emirates announced that it will buy EADS' A330 MRTT transport-tanker for its UAE Air Force & Air Defense, EADS announced on its Web site.

The number of planes sold and the value of the contract have not been disclosed.

Topics: Henri Bentegeat, Javier Solana
© 2008 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.

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