Israel finalises new submarine agreement with TKMS

The Israeli Ministry of Defense (MoD) announced on 20 January that it has signed an agreement with Germany's Thyssenkrupp Marine Systems (TKMS) for the development and production of three new submarines that will replace the three Dolphin-class boats that were built for the Israeli Navy in the 1990s.

The signing followed a lengthy planning and negotiation process involving the Israeli and German MoDs and TKMS.

“Israel will purchase three submarines from a new series called ‘Dakar' in an agreement amounting to approximately EUR3 billion,” said the statement. The class is named after INS Dakar : an Israeli submarine that sunk in 1968.

“The first submarine will be delivered within nine years. The agreement also includes the construction of a training simulator in Israel and the supply of spare parts. The German government will fund part of the agreement through a unique grant in accordance with an agreement signed between the countries in 2017,” it added.

It said it has also signed an industrial co-operation agreement with Germany's Federal Ministry of Economics and Technology worth more than EUR850 million (USD963 million) that will “result in the opening of new markets, professional training, technological development, employment opportunities, and a positive influx for both the Israeli economy and the defence establishment”.

The statement provided no details of the new submarines' specifications or capabilities.

The MoD did not comment on a report by Israeli business daily The Marker claiming TKMS significantly increased the cost of the three new submarines in recent months from EUR1.8 billion, with the German government covering one-third of the cost, to EUR3 billion, without Berlin increasing its contribution.