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Indonesia looks for a credit to build new submarines
10.09.2009
Indonesia continues searching the source of credit for procurement of two submarines in South Korea or Russia, informs Jane's Defense Industry referring to the country's Ministry of Finance.
During two recent years Indonesia has been receiving credits for purchase of Russian weapons in French NATIXIS investment bank (for purchase of Su-30MK2 fighters) and in several Russian state banks (to buy IFVs BMP-3F and also helicopters Mi-17 and Mi-35).
Currently the creditor for submarines acquisition is not assigned, reported the source in Ministry of Finance monitoring defense procurements on Sept, 8. Indonesia does not limit the sources of capital provision and considering high cost of the project negotiates with a number of foreign investment banks.
The purchase of two submarines is estimated as $700 million. The greater part of expenses is expected to be covered by export credit. At the same time it is planned that Indonesian defense budget for 2010, increased on 21% (up to $4 billion), will be enough to finance 10-15% of working cost.
As Indonesian military officials say, preliminary favorites of not-issued tender for delivery of new submarines are shipbuilding companies from South Korea and Russia.
In context of the project, Russia offers to Indonesia the 636Kilo-project diesel electric submarine. Korean Daewoo Shipbuilding and Marine Engineering (DSME) intends to present technical documents for delivery of two 1 400-ton 209-type diesel electric submarines designed in Germany.
It was previously planned that new submarines would be army-approved by 2015, but because of uncertainty in the source of finance the terms may be changed.
The specifications of submarines have already defined and based on the fact that submarines' features should exceed their analogs in the region, Indonesian Navy Commander previously said. Among the key parameters during evaluation of proposals will be offset program size and technology assignment clause.
The first submarine and the greater part of the second one are planned to be constructed on the territory of successful tenderer. However, the instrumentation of submarines and assembling of the second submarine are to be performed in Indonesia.
Source:
Indonesia continues searching the source of credit for procurement of two submarines in South Korea or Russia, informs Jane's Defense Industry referring to the country's Ministry of Finance.
During two recent years Indonesia has been receiving credits for purchase of Russian weapons in French NATIXIS investment bank (for purchase of Su-30MK2 fighters) and in several Russian state banks (to buy IFVs BMP-3F and also helicopters Mi-17 and Mi-35).
Currently the creditor for submarines acquisition is not assigned, reported the source in Ministry of Finance monitoring defense procurements on Sept, 8. Indonesia does not limit the sources of capital provision and considering high cost of the project negotiates with a number of foreign investment banks.
The purchase of two submarines is estimated as $700 million. The greater part of expenses is expected to be covered by export credit. At the same time it is planned that Indonesian defense budget for 2010, increased on 21% (up to $4 billion), will be enough to finance 10-15% of working cost.
As Indonesian military officials say, preliminary favorites of not-issued tender for delivery of new submarines are shipbuilding companies from South Korea and Russia.
In context of the project, Russia offers to Indonesia the 636Kilo-project diesel electric submarine. Korean Daewoo Shipbuilding and Marine Engineering (DSME) intends to present technical documents for delivery of two 1 400-ton 209-type diesel electric submarines designed in Germany.
It was previously planned that new submarines would be army-approved by 2015, but because of uncertainty in the source of finance the terms may be changed.
The specifications of submarines have already defined and based on the fact that submarines' features should exceed their analogs in the region, Indonesian Navy Commander previously said. Among the key parameters during evaluation of proposals will be offset program size and technology assignment clause.
The first submarine and the greater part of the second one are planned to be constructed on the territory of successful tenderer. However, the instrumentation of submarines and assembling of the second submarine are to be performed in Indonesia.
Source:
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