site.btaBusinessmen Argue that Ground Forces Armoured Vehicles Can Be Built in Bulgaria

October 3 (BTA) - Two companies have set up a joint
venture in Bulgaria which can manufacture the armoured vehicles
envisaged in a Ground Forces upgrading project. Peter Georgiev,
Executive Director of Samel-90 AD, and Anton Stefov, President
and CEO of International Armored Group, told a BTA news
conference on Thursday that their joint venture, Samarm, will
show that such vehicles can be built in Bulgaria, which will
prevent taxpayers' money from flowing out of the country.

According to Georgiev, Samarm can make the planned 150 vehicles
in one and a half to two years. The only discouraging thing is
the financial conditions, which, Georgiev said, are radically
different from the conditions of a recently ratified F-16
fighter aircraft deal for the Bulgarian Air Force. "We would be
expected to make the vehicles in six years and we would get our
money at the 12th year. No Bulgarian bank can lend us 1 billion
leva to enable us to start production," he commented.

Asked whether they have held concrete talks with any of the four
 companies invited to bid for the contract, and whether their
idea is to stop the tender and let everything start all over
again, Georgiev said he does not favour a restart of the tender,
 because the procedure has taken too much time already. "We
would like to start as soon as possible, although the
contracting authority has not approached us directly to give us
the terms of reference," he said, adding that three of the
companies which have received the terms of reference have
contacted them and want to work with them.

The project for the acquisition of armoured vehicles for the
Ground Forces is one of three major projects to upgrade the
Bulgarian Armed Forces. It will involve the supply of 150 combat
 and special vehicles for three future battalion-sized
battlegroups, plus related systems and additional equipment, and
 training of personnel. It is to be implemented over a period of
 12 years for a projected price of 1.464 billion leva. Requests
for proposals have been sent to four potential contractors:
ARTEC GmbH (Germany), Patria (Finland), NEXTER Group (France),
and General Dynamics Land System - MOWAG (Switzerland).

The government has said it wants to encourage the Bulgarian
defence industry to play a leading role in the three projects
where possible. RY/VE