Issued by: Ministry of Defence
The Cabinet today considered the report from the Cabinet subcommittee on the Procurement Program for the South African National Defence Force. The report and recommendations covered the military equipment, the defence and industrial participation, the national industrial participation program and the financial implications of the program were dealt with by the Finance Ministry.
The sub-committee made recommendations on the six core defence procurement programmes. The sub-committee recommended that the seventh program for battle tanks not be considered at this time.
The sub-committee also made recommendations on the preferred suppliers. The total industrial participation programmes were set out for Cabinet. This is a major project for the SANDF and is in effect a major industrial investment program that will be carried out with the European suppliers. Cabinet authorised the sub-committee and the Minister of Finance to enter into further negotiations with the preferred suppliers to achieve an affordable final package.
The sub-committee will report back to the Cabinet. These negotiations will commence shortly. In addition all bidders will receive a debriefing in the next few days. A summary of the preferred suppliers, the package and indicative figures is set out in the attached page (Annexure A)
The preferred suppliers are:
The quantities of the products are in line with the revised recommendations based on the Defence Review. The stratetgic packages ensure both Defence Review. The strategic packages ensure both Defence and Development for our country.
INDUSTRIAL PARTICIPATION OVER 7 YEARS PER PROGRAM -
PRODUCT COST INVESTMENT EXPORTS LOCAL SALES NO OF JOBS --1. CORVETTE R6 001,25m R2 112m R2 109m R11 786m 10 153 2. SubmarinesR5 212,50m R6 262m R22 950m R1 062m 16 251 3. Utility Helicopter R2 168,75m R431m R2 847m R1 407m 4 558 4. Maritime Helicopter R 785,50m R268m R227m R2 225m 2 536 5. Trainer Aircraft R4 728,13m R2 552m R4 566m R1 462m 7 472 6. FIGHTER aircraft R10 875,00m R14 387m R26 481m R7 445m 23 195 --TOTAL R29 773,00m R26 012m R59 180m R25 387m 65 000
COST R 29 773m IP R110 000m JOBS 65 000