BRENDAN SOBIE / SINGAPORE
Lack of cash forces navy to re-examine helicopter requirement but fighter is safe
Singapore has further delayed competitions to select new fighters and naval helicopters as it tries to balance defence requirements against a tightening budget.
Next month, manufacturers expect Singapore to issue a request for a best and final offers (BAFO) for the helicopters and a fighter shortlist. Both were supposed to have occurred by now, but Singapore has continually slipped decisions without explanation. Industry sources believe a budget crunch is forcing the Singapore navy to re-examine the helicopter requirement ahead of the BAFO.
Singapore lacks funding for the planned eight helicopters, forcing the navy to either reduce the buy, opt for a less costly configuration or move money from another programme. The navy is still considering its options in an attempt to find an affordable configuration that meets the requirement.
The Eurocopter AS532C Cougar, NH Industries NH90 and Sikorsky S-70 were shortlisted in 2001. In June Singapore said it hoped to select a winner by year-end, ready for delivery as early as 2007.
Singapore is due to start paying for the helicopters this fiscal year, which ends in March 2004. Funds earmarked for this programme look to have shrunk because the economic downturn and the SARS virus have reduced tax revenues.
Manufacturers fear if the procurement does not start this year it could be jeopardised, as fighters will consume the budget from 2007 and the helicopters will have to compete against requirements such as new training aircraft in 2005-6.
Industry sources say the fighter procurement has higher priority and will not be affected. But the down selection is delayed because it has taken longer than expected to finalise the shortlist and secure ministry of defence approval.
The shortlist is believed to include the Boeing F-15, Euro-fighter Typhoon and the Lockheed Martin F-16, with the Boeing F/A-18 Hornet, Dassault Rafale and Sukhoi Su-35 eliminated (Flight International, 10-16 June).
Manufacturers still anticipate final contract award for 10 fighters plus 10 options by the end of 2005.
Source: Flight International
