Sources inform ''Globes'' that the US and Israel spent over $400 million on the Nautilus laser anti-missile system against rockets and Katyushas before the program was cancelled. Israel invested $150 million in the program. The main reasons the program was cancelled were a decision by the US Army to suspend financing, and the failure to shrink the system down to the stipulated size.
When the Nautilus program was cancelled, the Ministry of Defense examined other development directions to respond to the Palestinian’s Kassam rockets. Opinion in the ministry was divided whether to invest in development of a missile interception system because of calculations indicating that development costs of a missile would be NIS 1 billion. The calculation also showed that each missile fired against a Kassam would cost $50,000-100,000, in addition to the development costs.
The core argument against the system was that developing an interceptor missile was illogical. The Ministry of Defense directorate of defense R&D asked Rafael Armament Development Authority Ltd. to come up with a solution: a missile capable of interception both the launcher and the Kassam while in flight. Rafael claims that the missile it developed can use sensors identify incoming Kassam missiles, and intercept only the ones posing a threat.
A delegation from Northrop Grumman (NYSE:NOC), the chief contractor for the laser missile interceptor, recently visited Israel in an effort to persuade Israel’s defense establishment to resume participation in the program. The delegation met Minister of Defense Amir Perez, director general Jacob Toren, the head of the ministry’s anti-ballistic missile Homa project, Arie Herzog.
Israel is highly skeptical about resuming the program. Israeli officials said, “We invested ten years in the project at high cost and with no results. What can happen now, after the US Army has lost interest?”
Completing the Nautilus program, including building six interceptor systems, will reportedly cost an additional $300 million, bringing the total cost to $700 million. This figures does not include logistics or manpower for maintenance and operation. The system’s vulnerability will also necessitate deployment of a protective perimeter defense. The cost of laser system to intercept two or three kassams (because of their speed) is $2,500, far less than the cost of an Kassam interceptor missile, but the laser system will cost at three times more to develop.
Published by Globes [online], Israel business news - www.globes.co.il - on July 9, 2006
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