site.btaPurchase of New Patrol Ships, Maintenance of MiG-29 Fighters Postponed - Defence Minister

Sofia, December 20 (BTA) - Defence Minister Krassimir Karakachanov explained to Prime Minister Boyko Borissov and journalists during Wednesday's Cabinet meeting that the negotiations with the MTG Dolphin PLC company, which was supposed to build two multipurpose patrol ships, have failed because the company has decided not to sign the contract. This is the reason Karakachanov proposed to have the agreements signing withdrawn from the agenda of Cabinet's meeting, during which they were supposed to be put to the vote.

The Defence Minister also said that the procedure for the repair and maintenance of the 15 MiG-29 fighter aircraft has been postponed, the reason being that a Ukrainian company has lodged an appeal with the Commission on Protection of Competition (CPC) against the Ministry's way of negotiating the public procurement procedure.

At the beginning of December, the Defence Ministry decided to open a public procurement procedure for awarding a contract for the integrated logistical support of the Bulgarian Airforce's Soviet-era fighter aircraft for a period of four years. The projected cost is up to 81,294,416 leva, excluding VAT. It transpired from the document published by the Ministry back then, that only Russian State-owned company RSK MiG will be invited to negotiate a four-year, 80-plus million leva contract for the maintenance of the MiG 29s.

According to Karakachanov, the approved 82 million leva cannot be absorbed by this year's end, 20 million of which were approved during Cabinet's last meeting, while another 22 million were supposed to be approved this Wednesday.