Competition put back another year as budgetary constraints and political wrangling continue to hit key projects
Taiwan's attack helicopter competition is facing another one-year delay, as the country's ministry of national defence struggles to move forward with several key modernisation programmes. Bell Helicopter and Boeing, which are vying for the 30-aircraft requirement, expect the programme to be excluded from the 2005 budget, meaning a selection may not occur this year as planned, pushing a contract award into at least 2006.
Boeing's AH-64D Apache Longbow is considered the favourite, having beaten Bell's AH-1Z in a cost and operational effectiveness analysis study completed early this year (Flight International, 11-17 May). But industry sources say the ministry's approval of this analysis has been deferred until budget and investment issues can be resolved. Bell believes this delay could work in its favour, because the AH-1Z is scheduled to complete its operational assessment in the USA next year. However, Boeing is confident that the Apache remains the frontrunner and that proposals to upgrade or remanufacture Taiwan's Bell AH-1W fleet will be rejected.
Political wrangling is also holding up Taiwan's planned purchase of 12 used Lockheed Martin P-3C Orion anti-submarine warfare aircraft and three Lockheed Martin/Raytheon Patriot Advanced Capability-3 air defence missile systems. Taiwan's cabinet approved these purchases last month as part of a special NT$611 billion ($18 billion) package, but legislature approval has been delayed by a group of opposition lawmakers who have raised questions about the price of eight submarines also included in the package.
The US government is preparing a new price quote, but industry sources say this may not be ready in time to allow the package to be approved this year. This could lead to a one-year delay to these programmes, and to a reassessment of the decision to acquire used P-3Cs, instead of new-build aircraft. The special package is necessary because the NT$40 billion annual investment budget is not sufficient. The army's portion of the budget is already deemed too small to begin funding the attack helicopter purchase in 2005, since command and control commitments are consuming most of its allocation.
Taiwan needs to find funds for a new-generation fighter programme within the next three to five years. Lockheed Martin is promoting the F-35 Joint Strike Fighter (JSF), but rivals believe an interim purchase will be required. The ministry has indicated it is interested in joining the JSF's development phase, but has not yet made a request to Washington for a programme briefing.
BRENDAN SOBIE / SINGAPORE
Source: Flight International
