Non-Subscriber Extract
Funding problem puts Taiwanese submarines deal in limbo
- Article Tools
|
14 July 2003 |
By Andrew Koch, JDW Bureau Chief
Washington, DC
The desire of the Republic of China (Taiwan) for a fleet of eight diesel-electric submarines could be more than a decade away after Taiwanese navy officials told their US counterparts that funding is three years away.
A USN official told JDW that if money is not available until Fiscal Year 2006 (FY06), the process of tendering and selection would push the programme out to a 2013-14 delivery date.
USN officials note that until Taiwan provides the US with formal assurances that sufficient funds for the multi-billion-dollar deal have been secured, any US military programme to design the boats will be left in limbo.
The USN would also be looking for $300 million to $350 million up front to start the programme and Taiwanese legislators may baulk at the amount without knowing what kind of submarine they are receiving.
The navy has briefed four potential US companies that have the capability to bid as prime contracts - Lockheed Martin, Northrop Grumman's Newport News, General Dynamics' Electric Boat and Raytheon - although only Northrop Grumman and General Dynamics are expected to offer bids.
The navy's submarine fleet consists of two 50-year-old Guppy-class diesel-electric boats, which are both in very poor condition, and two Dutch-built Hai-Lung-class boats commissioned in 1987/88.
207 of 437 words