| Saudis confirm £4.4bn Eurofighter order |
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| Monday, 17 September 2007 | |
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The Government of Saudi Arabia has reached agreement with the UK Government to purchase 72 Eurofighter Typhoon aircraft in a deal worth £4.43 billion.
The government-to-government agreement follows plans outlined in December 2005 to establish a greater partnership in modernising the Saudi Arabian Armed Forces. This new defence cooperation programme, known as "Project Salam", builds on a long and successful relationship between the UK and Saudi Arabian Governments and their armed forces. The Governments share key objectives on national security and actions to combat global terrorism. Saudi Arabia continues as an important strategic ally for the United Kingdom in the Middle East, playing a moderating leadership role in promoting regional stability. This agreement will be supported by substantial logistical and training packages, including the opportunity for RAF and Royal Saudi Air Force aircrews and ground technicians to train alongside each other in the UK. This UK Government said that the decision begins a new chapter in defence co-operation between the nations, and reflects the Saudi Arabian Government's "continued confidence" in the United Kingdom to provide the military capability needed to meet its defence requirements. The agreement will also support thousands of jobs in both the UK and Saudi Arabia to manufacture and support these aircraft. Last year the British government prompted criticism from the Organisation for Economic Co-operation and Development (OECD) and others when it halted an investigation by the Serious Fraud Office (SFO) into alleged bribes paid by BAE Systems to a Saudi intermediary in the 1980s in connection with a sale of Tornado and Hawk fighter jets to Saudia Arabia. The US Department of Justice started investigations into this earlier jet purchase three months ago. The Governments of Saudi Arabia and the UK signed a formal understanding in 1985 for the supply of Tornado IDS, Tornado ADV, Hawk and PC-9 aircraft, together with associated support services, equipment, weapons, ammunition and electronic warfare systems; the aircraft have all since been delivered. Modernising The two governments signed a Memorandum of Understanding (MOU) in 1986 elaborating the arrangements put in place the previous year. This formalised the role of British Aerospace - or "BAe" as it was called at the time - as the main contractor for the whole programme, and established a UK Ministry of Defence (MOD) Project Office within the Defence Export Services Organisation (DESO) to coordinate the activities of UK MOD in support of the programme, and to monitor the contracted activities of BAe. The two governments signed the "New Buy Tornado Agreement" for the supply of additional Tornado IDS aircraft in 1993. On 21 December 2005 the then Secretary of State for Defence, Dr John Reid, signed an Understanding Document which was intended to establish a greater partnership in modernising the Saudi Arabian Armed Forces and develop close service-to-service contacts, especially through joint training and exercises. Under the terms of the document it was agreed that Typhoon aircraft would replace Tornado ADV aircraft and others currently in service with the Royal Saudi Air Force. BAE Systems would also invest in local Saudi companies, develop an industrial technology plan, and provide suitable training for thousands of Saudi nationals providing through life support for key in-service equipments. Negotiations on the details of the sale of the 72 aircraft, the initial provisioning package, aircrew and technician training in the UK, spares reprovisioning, ground support equipment, technical publications, technical support and contractor manpower support have continued and this agreement on aircraft acquisition marks the start of Project Salam. The 1986 MOU requires the UK Government to ensure that all equipment, spares, training and technical work supplied by BAE Systems are in accordance with Saudi requirements. This requirement will continue for Project Salam. BAE Systems' performance in meeting requirements is monitored by the MOD's Director General Saudi Armed Forces Project (DGSAP) and his staff, based in London and Saudi Arabia. The Saudi Arabian order helps safeguard 100,000 jobs at BAE Systems and its partner companies EADS-Military Aircraft (Germany), Alenia Aerospazio of Italy and EADS-CASA (Spain). Sources suggested that the first 24 Eurojets will be supplied out of a British government order of 232 planes. Related links |
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