GEC-MARCONI IS denying reports from Manila that the Philippine Government has cancelled a recently signed contract for four surveillance radars.
The Philippine press has reported that President Ramos has ordered that the radar deal be revoked and new tenders requested, after Senator Sergio Osmena alleged that the 3.5 billion peso ($133 million) contract was rushed and over priced
The UK manufacturer, however, claims that it has not been informed officially of any cancellation. "It's very much a local political issue. We do not believe it has been cancelled, but rather that it is in abeyance," says GEC-Marconi.
The company adds, "If and when we're informed, we'll need to consider our position and it would be inappropriate to comment any further."
GEC-Marconi was selected after submitting a bid with strong financial backing from the UK Government's Export Credits Guarantee Department, with soft loans underwriting up to 85% of the deal. Also competing for the deal were Thomson-CSF, Westinghouse, Lockheed Martin, Toshiba and Raytheon.
The contract calls for, two Martello 473 three-dimensional primary/secondary surveillance radar and two Messenger secondary radar to be installed within 36 months, on Palawan, Zamboanga, Batulaki and Lubang Islands.
It forms part of a larger programme to modernise the Philippines' radar coverage and is de- signed to be self-financed by billing over-flying commercial aircraft. The two, long-range Martello radar will also give the military the ability to track potential hostile-aircraft movement, over the South China Sea.
Source: Flight International
