Germany is increasing support for Argentina’s submarine acquisition project, focusing on TKMS Type 209NG submarines. The Ministry of Defense is evaluating proposals, including a non-binding commitment to Naval Group for Scorpène-class submarines. Financing strategy remains key, with significant state guarantees from Germany expected soon, although the final decision hinges on fiscal approvals and projected delivery dates.
Germany is intensifying its efforts to help the Argentine Navy acquire TKMS Type 209NG submarines. The Argentine Ministry of Defense aims to finalize the procurement of new attack submarines, although evaluation of proposals, like the one from Naval Group for Scorpène-class submarines, is ongoing. Reports indicate that the German government is on track with approving $4.27 billion in state guarantees to support TKMS’s submarine proposal.
The current submarine replacement program involves two primary proposals from Naval Group and TKMS, with both offering three submarines. The advance of negotiations was marked by a Letter of Intent signed with Naval Group during a visit by Argentina’s Defense Minister, though this document is non-binding. It allows other bidders, like TKMS, to bolster their offers and government support.
Financing plays a crucial role in the eventual decision. Argentina’s budget proposal for 2025 faces uncertainty, necessitating the potential extension of the 2023 budget, which includes a $2.3 billion plan earmarked for submarines. Notably, a Reuters report mentioned the projected delivery timeline for the German submarines is around 2034 and 2035, with the German government’s preliminary budget committee action expected soon.
Overall, negotiations have quieted down as the Ministry of Defense works through the necessary approval processes. Given the requirements for Executive Branch authorization and compliance with a strict fiscal policy from the Ministry of Economy, these acquisitions are under close scrutiny, potentially affecting the final decision.
The Argentine Navy is exploring options to modernize its submarine fleet amidst ongoing efforts to enhance military capabilities. The selection process for a suitable replacement includes consideration of proposals from prominent manufacturers like Naval Group and TKMS. Government-backed financing options are critical to ensure the success of such high-value military acquisitions, necessitating careful budgeting and fiscal management from Argentina’s authorities.
In conclusion, Germany is set to back TKMS’s bid to provide submarines to Argentina, amidst a competitive procurement process involving multiple proposals. Despite significant progress in negotiations, financial considerations, projected timelines, and governmental oversight will strongly influence the final decision on the acquisition of new submarines for the Argentine Navy.
Original Source: www.zona-militar.com
