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Following the delay in decision about the Brazilian Air Force future fighter, Brazilian President Dilma Rousseff will reevaluate a 10 billion real ($6 billion) plan to purchase 11 offshore patrol vessels for the Brazilian Navy, as she seeks to streamline government expenses, according to news agency Reuters quoting local newspaper Folha de S.Paulo, citing people familiar with the decision.
Rousseff, who also is reviewing a plan by her predecessor and political mentor, Luis Inacio Lula da Silva, to buy at least 36 fighter jets, is concerned that the plans could derail her efforts to control a surge in government expenses, the newspaper reported.
The plan involves the purchase of 11 ships to patrol and protect Brazil's offshore oil finds, some of which are located more than 193km into the Atlantic Ocean.
Potential bidders for the plan include UK's BAE, France's DCNS and Germany's Thyssenkrupp, the newspaper reported.
South Korea's Daewoo group and Fincatieri of Italy were also seen participating, the paper said.
The Folha report comes a week after Reuters reported that Rousseff opted to "start over" in her evaluation process for the multibillion Air Force jet contract that involved the purchase of at least 36 fighter jets.
The surprise decision is seen as a blow to France's Dassault, which as recently as last month looked like a lock to quickly wrap up the deal, and puts its US Based rival Boeing clearly back in the running.
In 2009, Brazil and France signed an accord under which the South American nation agreed to purchase more than 20 billion reais in submarines and helicopters.
The need for the new ships derive from growing offshore drilling at Brazils' economic exclusion zone (EEZ), located more than 120 miles (193 km) into the Atlantic Ocean. Potential bidders for the program include BAE Systems from the U.K., Thyssenkrupp from Germany and the Franch DCNS company, which is already under contract since 2009 to build Brazil's future submarines as part of an 20 billion reais arms procurement plan. Other bidders likely to join the tender include the South Korean company Daewoo group and Italian ship builder Fincatieri.
DefenseUpdate
Rousseff, who also is reviewing a plan by her predecessor and political mentor, Luis Inacio Lula da Silva, to buy at least 36 fighter jets, is concerned that the plans could derail her efforts to control a surge in government expenses, the newspaper reported.
The plan involves the purchase of 11 ships to patrol and protect Brazil's offshore oil finds, some of which are located more than 193km into the Atlantic Ocean.
Potential bidders for the plan include UK's BAE, France's DCNS and Germany's Thyssenkrupp, the newspaper reported.
South Korea's Daewoo group and Fincatieri of Italy were also seen participating, the paper said.
The Folha report comes a week after Reuters reported that Rousseff opted to "start over" in her evaluation process for the multibillion Air Force jet contract that involved the purchase of at least 36 fighter jets.
The surprise decision is seen as a blow to France's Dassault, which as recently as last month looked like a lock to quickly wrap up the deal, and puts its US Based rival Boeing clearly back in the running.
In 2009, Brazil and France signed an accord under which the South American nation agreed to purchase more than 20 billion reais in submarines and helicopters.
The need for the new ships derive from growing offshore drilling at Brazils' economic exclusion zone (EEZ), located more than 120 miles (193 km) into the Atlantic Ocean. Potential bidders for the program include BAE Systems from the U.K., Thyssenkrupp from Germany and the Franch DCNS company, which is already under contract since 2009 to build Brazil's future submarines as part of an 20 billion reais arms procurement plan. Other bidders likely to join the tender include the South Korean company Daewoo group and Italian ship builder Fincatieri.
DefenseUpdate
