Will pakistan ever have any luck getting any of these babies?!!! :mad
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April 21, 2003
Ankara Finally Approves Boeing AEW&C Contract
By BURAK EGE BEKDIL, ANKARA And UMIT ENGINSOY, WASHINGTON
After months of prolonged negotiations with Boeing Co., Turkey’s government and military leaders have finally approved a $1.6 billion contract for the purchase of four aerial early warning and control (AEW&C) aircraft. The contract is slated to be signed this week.
Following Ankara’s go-ahead, a team of top managers from the Chicago-based company are scheduled to visit Ankara this week to ink the final text. They will be signing a memorandum of understanding (MOU) that will complete the entire AEW&C deal, Turkish officials said.
The MOU concerns a six-week delay, per Boeing’s request, for the letter of credit the company must submit to the Turkish government as part of the deal, according to the Turkish officials.
Government sources told Defense News April 18 that Turkish Prime Minister Recep Tayyip Erdogan gave his final go-ahead for the program after a meeting April 17 with Gen. Cumhur Asparuk, Air Force commander, and Finance Minister Kemal Unakitan.
“Gen. Asparuk explained to the prime minister the urgency of the requirement, and the finance minister agreed to the financing package attached to the contract,” a senior prime ministry official said. “In line with both presentations, the prime minister agreed to the deal.”
Earlier last week, Defense Minister Vecdi Gonul and Gen. Hilmi Ozkok, chief of the General Staff, had approved the AEW&C deal.
Also last week, Turkey’s procurement authorities and Boeing officials ironed out their differences over technical and financing matters, leaving out the letter of credit issue to an MOU for this week. As soon as the letter of credit takes effect, so will the AEW&C contract, and Turkey will have to make a 10 percent advance payment to Boeing.
Boeing officials had no immediate comment April 18 as Defense News went to press.
But a senior Boeing official said April 17 that the company was awaiting Erdogan’s decision. “We’re hopeful,” said the official.
Program Delays
The road to a final agreement has been rough. Turkish officials have extended a deadline for the contract to take effect three times since last December. The contract was signed last June, and Turkish and Boeing officials aimed to conclude all details and put the deal into effect by Dec. 4. Failing that, Boeing and the Turkish government had agreed on an extension until Feb. 4, then until April 4, and finally until April 18.
Under the terms of the deal, Boeing has signed more than $100 million worth of subcontracts and $500 million in offset commitments with Turkish military and civil aviation companies, but disputes over local content and export licenses had stalled the deal.
An offset is a form of industrial compensation designed to reduce the financial burden of the purchasing country in defense deals. For example, the prime contractor may assign work to firms from the purchasing country. Boeing’s proposed offset commitments as part of the AEW&C deal will spread across a decade.
Supported by U.S. President George W. Bush’s administration, the Turkish AEW&C contract won the U.S. Congress’ approval last August. The systems, including four AEW&C aircraft, ground radar and control stations, are to be delivered to the Turkish Air Force in late 2006.
Turkey in November 2000 selected Boeing as prime contractor. The two sides successfully concluded contract negotiations last May, and the contract was endorsed in Ankara in June. Under the deal, Turkey has an option to buy two more AEW&C aircraft.
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April 21, 2003
Ankara Finally Approves Boeing AEW&C Contract
By BURAK EGE BEKDIL, ANKARA And UMIT ENGINSOY, WASHINGTON
After months of prolonged negotiations with Boeing Co., Turkey’s government and military leaders have finally approved a $1.6 billion contract for the purchase of four aerial early warning and control (AEW&C) aircraft. The contract is slated to be signed this week.
Following Ankara’s go-ahead, a team of top managers from the Chicago-based company are scheduled to visit Ankara this week to ink the final text. They will be signing a memorandum of understanding (MOU) that will complete the entire AEW&C deal, Turkish officials said.
The MOU concerns a six-week delay, per Boeing’s request, for the letter of credit the company must submit to the Turkish government as part of the deal, according to the Turkish officials.
Government sources told Defense News April 18 that Turkish Prime Minister Recep Tayyip Erdogan gave his final go-ahead for the program after a meeting April 17 with Gen. Cumhur Asparuk, Air Force commander, and Finance Minister Kemal Unakitan.
“Gen. Asparuk explained to the prime minister the urgency of the requirement, and the finance minister agreed to the financing package attached to the contract,” a senior prime ministry official said. “In line with both presentations, the prime minister agreed to the deal.”
Earlier last week, Defense Minister Vecdi Gonul and Gen. Hilmi Ozkok, chief of the General Staff, had approved the AEW&C deal.
Also last week, Turkey’s procurement authorities and Boeing officials ironed out their differences over technical and financing matters, leaving out the letter of credit issue to an MOU for this week. As soon as the letter of credit takes effect, so will the AEW&C contract, and Turkey will have to make a 10 percent advance payment to Boeing.
Boeing officials had no immediate comment April 18 as Defense News went to press.
But a senior Boeing official said April 17 that the company was awaiting Erdogan’s decision. “We’re hopeful,” said the official.
Program Delays
The road to a final agreement has been rough. Turkish officials have extended a deadline for the contract to take effect three times since last December. The contract was signed last June, and Turkish and Boeing officials aimed to conclude all details and put the deal into effect by Dec. 4. Failing that, Boeing and the Turkish government had agreed on an extension until Feb. 4, then until April 4, and finally until April 18.
Under the terms of the deal, Boeing has signed more than $100 million worth of subcontracts and $500 million in offset commitments with Turkish military and civil aviation companies, but disputes over local content and export licenses had stalled the deal.
An offset is a form of industrial compensation designed to reduce the financial burden of the purchasing country in defense deals. For example, the prime contractor may assign work to firms from the purchasing country. Boeing’s proposed offset commitments as part of the AEW&C deal will spread across a decade.
Supported by U.S. President George W. Bush’s administration, the Turkish AEW&C contract won the U.S. Congress’ approval last August. The systems, including four AEW&C aircraft, ground radar and control stations, are to be delivered to the Turkish Air Force in late 2006.
Turkey in November 2000 selected Boeing as prime contractor. The two sides successfully concluded contract negotiations last May, and the contract was endorsed in Ankara in June. Under the deal, Turkey has an option to buy two more AEW&C aircraft.