Bulgaria's Supreme Administrative Court yesterday overturned a decision made by the Bulgarian Ministry of Defense that suspended the procedure for awarding a helicopter upgrade contract to Elbit Systems (Nasdaq: ESLT; TASE: ESLT).
Bulgarian news agency "Dnevnik" stated that the ruling cannot be appealed, and therefore effectively binds the Bulgarian Ministry of Defense to a deal with Elbit Systems.
In December 2004, a team led by Elbit and Lockheed Martin were selected as the preferred bidder for a Bulgarian Air Force program to upgrade 18 Russian-made Mi-17 and Mi-24 attack and transport helicopters.
In March, Elbit announced that it had received notification from the Bulgarian Ministry of Defense announcing the stoppage of the tender process for the Mi-17 and Mi-24 helicopter upgrade program. The program was not included in Elbit's backlog of orders.
According to reports at the time, Bulgaria's Ministry of Defense stated that Elbit's offer "did not meet the previously announced requirements". This followed statements to the press by Russian Minister of Defense Sergei Ivanov who said that Elbit's offer to upgrade weapons supplied during Soviet times was illegal.
According to "Dnevnik", negotiations continued during the court appeals, and the upgrade contract is now ready.
Elbit Systems stated to Bulgaria's "FOCUS" news agency that it is ready to implement the project "because it realizes how important it is for the Bulgarian Air Force".
Published by Globes [online], Israel business news - www.globes.co.il - on Thursday, November 24, 2005