Arms: France is well placed for a Mega contract with Pakistan
PARIS (Dow Jones) - Following a call for tenders, Pakistan has retained the French ATE integrator for a contract valued at more than 1 billion euros to help equip and electronics missiles between 50 and 100 fighter aircraft JF-17, designed with the help of Beijing, Les Echos reported on Friday quoting sources concurrent.
The contract would be shared with partners both the ETA, Thales SA (HO.FR) and MBDA, for missiles. MBDA is jointly owned by European Aeronautic Defense & Space Co. NV (EAD.FR), BAE Systems PLC (BA.LN) and Finmeccanica SpA (FNC.MI).
"The contract is ready to be signed. But it must first be a security agreement is signed between the two countries," the economic daily said, adding that the conclusion of this agreement could intervene in the first half of 2010.
After years of "famine", France could strike a huge arms contract from Pakistan. Following a tender, Islamabad has retained the ATE integrator to equip electronics and missiles for between 50 and 100 fighters of the JF-17 fighter planes, designed with the help of Beijing .
Its been learned from our sources, confirming a letter of "Online Intelligence" that a potentially more than 1 billion euros contract- to be shared between the French integrator ATE and its two main partners on the project--- Thales for the electronics and MBDA for missiles.
A more modern technology
The contract is ready to be signed. But first, the two countries must sign a security agreement given the sensitive nature of the equipment.
"Nearly 90% of head way for the contract has been made and the issues that remain are few and not among the most sensitive" says one source close to negotiations.
The conclusion of this bilateral agreement could be reached in the first half of 2010. A second condition that remains is that the client country, highly indebted, mobilizes the necessary funds as promised.
Desiring to have a "national/indeginous" fighter for missions including ground attack, Pakistan turned to China in mid 1990s. After many ups and downs, the program has finally taken off. The production of JF-17 has recently started. However Islamabad, anxious not to depend on one supplier for its strategical weapons and desiring a more modern technology, has deliberately limited its cooperation with Beijing. Thus, according to the plans of its air force, only the first 50 examples of the JF-17 fighter will be produced entirely under Chinese license (equipments).
For the rest (following) aircrafts, the pakistan government has launched a tender to which two French companies, ATE and Astrac (a joint venture between Thales and Safran) and Finmeccanica responded.
To finally accept the offer of ETA, even if the information has not yet been officially confirmed, the negotiated contract provides a firm order on 50 aircraft and an optional slice of the same number, with delivery expected from 2013.
Overall, Pakistan would like to build 400 JF-17, but the target remains to be confirmed. As local authorities must demonstrate first they will mobilize the money required for the standard "westernized" version of this fighter aircraft.
When contacted, ETA did not wish to speak on this subject.
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This information is from a french financial Newspaper. Just spent the last 30 mins to translate and type it. Hope you guys like it and lets wait for further details.