Turkey's defense industry executive committee decided on Friday to cancel $11 billion in existing tenders.
Israeli defense industry sources fear there may be cancellations and delays in contracts with Turkey. The Turkish government announced on Friday that it was canceling $11 billion in tenders, including a tender to purchase strike helicopters, and existing tenders for purchase of unmanned surveillance aircrafts and for a tank-upgrading project.
According to reports by the Anatolia news agency, the decision was made at a meeting of Turkey's Defense Industry 2004 Year Executive Committee, chaired by Turkish Prime Minister Recep Tayyip Erdogan. Turkish General Staff Chief Gen. Hilmi Ozkok, Turkish National Defense Minister Vsecdi Gonul and Turkish Defense Industry Undersecretary Murat Bayar attended the meeting that lasted four hours. Anatolia reported that the committee also decided to form new procurement models based on domestic production and original design and maximum usage of national capabilities.
According to highly-placed sources in Israel's defense industries, this decision could delay or even cancel several projects currently under negotiation.
The biggest of these is a $700 million contract for Israel Military Industries to upgrade hundreds M-60 tanks used by the Turkish military. The contract represents $250 million in income for Elbit Systems (Nasdaq:ESLT; TASE:ESLT), which is participating in the bidding as a sub-contractor.
Published by Globes [online] - www.globes.co.il - on Sunday, May 16, 2004