The first year of development is being jointly funded by the Pentagon and Israel.
The US Senate Committee on Appropriations has approved a $25 million appropriation for developing a missile to intercept short-range ballistic missile and long-range Katyusha rockets. The appropriation for the first year of development was jointly made by the Pentagon and Israel. The program is called short-range ballistic missile defense (SRBM), or mini-Arrow. Raytheon Co. (NYSE:RTN) and Rafael Armament Development Authority Ltd. will jointly build the anti-SRBM missiles.
The Senate Committee on Appropriations was told that the Ministry of Defense’s Homa project wanted to develop an SRBM defense against missiles and launchers possessed by Hizbullah and Syria with ranges of 20-200 kilometers, including Katyushas, and the Fajer and Zilzal missiles, as well as the Iskander missile that Syria wants to buy from Russia. The system will not be effective against short-range Katyushas of up to 15 kilometers. Defense of Israeli communities along the northern border and the Gaza Strip, as well as along the eastern border will require a different solution.
Thanks to US administration support for Israel’s response, and because the US defines Hizbullah as a terrorist organization, the Senate Committee on Appropriations approved the request in full, but made the first year’s development of the SRBM defense subject to Israel providing matching funds. The IDF General Staff was due to discuss its development budget and five-year procurement plan this month, but postponed the discussion because of the war. The Homa project estimates the development and initial procurement of the system at $500 million.
Published by Globes [online], Israel business news - www.globes.co.il - on July 23, 2006
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