Andrew Doyle/MUNICH Jonathan Rosenthal/JOHANNESBURG
The South African cabinet has approved plans for a sweeping modernisation of the country's armed forces but slashed the initial cost by nearly one-third to R21.3 billion ($3.5 billion).
The bulk of the savings has been achieved by trimming early purchases of Saab/British Aerospace Gripen fighters and BAe Hawk trainer aircraft, while plans to acquire four GKN Westland Lynx maritime helicopters have been postponed.
The Gripen deal, the type's first export sale, covers nine two-seat variants and an option for 19 single-seaters. Half of the planned 24 Hawk 100s have also been optioned. Deliveries are expected to begin in around five years' time, although this has yet to be finalised.
Italy's Agusta will supply 30 A109 light utility helicopters after the original requirement for 40 aircraft was cut. The deal involves local assembly of the A109 plus work on the civil A119 Koala. A further A109 purchase is likely.
"The conversion of 30% of the original contract value into options ensures that the South African National Defence Force can obtain the required equipment-without creating immediate fiscal pressures," says the government.
South African defence sources expect some or all of the Gripen options to be exercised before they expire in 2004, as the initial commitment would allow the effective deployment of only four to six aircraft. "That's not nearly enough to do any sort of job-it would not really be maintaining a full operational capability," says a defence industry source.
Exercising the Gripen options would in turn lead to a requirement for additional Hawks to allow sufficient pilots to undergo lead-in fighter training. The two-seat Gripens are planned to be used mainly for operational training.
The maritime helicopter requirement is expected to be re-tendered or renegotiated with Westland, as the aircraft are required for use with four Meko-type corvettes - which will now not enter service until 2006, allowing a later helicopter buy.
The contracts include extensive direct and indirect offset work for South African industry. BAe and Saab are believed to have offered offsets worth more than 300% of contract value.
The government announced the list of preferred suppliers for its 15-year defence modernisation programme last November, pledging at the same time to spend R31 billion.
Source: Flight International
