Indon going to buy U-boats
Friday, August 26, 2011
ÜMİT ENGİNSOY
ANKARA – Hürriyet Daily News
A team of Turkish and German companies, as well as Turkey’s procurement office, are jointly looking to sell two HDW-class 209-type diesel submarines to Indonesia in a $1 billion deal, a senior Turkish procurement official said Friday.
“Our package is excellent. We are hopeful and waiting for Indonesia’s decision,” said the official, who spoke on condition of anonymity.
The only competitor for the German-Turkish partnership is South Korea’s Daewoo Shipbuilding and Marine, which emerged as the favorite after French and Russian bidders for the Indonesian Navy’s tender fell off.
Daewoo was expected to bid together with Germany’s Howaldtswerke-Deutsche Werft, or HDW, but later decided to join the competition on its own.
Sweetening the deal
In an effort to win the bid over their Korean rivals, SSM is reported to be offering sweeteners. In a letter sent to Indonesian Adm. Soeparno, who uses one name like many Indonesians, SSM chief Murad Bayar said, “Our offer includes one or two 209-class submarine leases to the Indonesian Navy as a ‘gap-filler’ solution until your submarines have been built.”
Bayar also pledged a maximum work share for Indonesian defense companies, including the Indonesian national shipyard PT-PAL, in emphasizing HDW’s full support for the Turkish bid.
“A very attractive and advantageous financial package will be included as well,” Bayar said.
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