Argentina's FAdeA state-owned aerospace factory and the Argentine government have offered Paraguay six IA-63 Pampa III trainer/light attack aircraft to replace the Paraguayan Air Force's retired Embraer Xavantes aircraft.
The offer, which Jane's understands was made in late April, specifies that the aircraft would be offered in return for a reduction of Argentina's debt to Paraguay for electricity from the Yaciretá dam, which is shared between the countries.
The value of the contract being negotiated is about USD100 million. The deal, if approved by the Paraguayan government, would be the first export contract for the Pampa.
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