site.btaBudget and Finance Committee Approves Ratification Bill in Field of Defence

The Budget and Finance Committee of the National Assembly approved a bill for the ratification of International Treaty (Letter of Offer and Acceptance - LOA) BU-P-LBL GPS module providing support for M-code“ for military purposes, submitted by the Council of Ministers. Sixteen MPs voted in favour, three against, and there were no abstentions.

The international treaty was drawn up in connection with the implementation of the Ministry of Defence's priority investment expenditure project “Acquisition of a Multifunctional Modular Patrol Ship for the Navy (VMN)”. With the implementation of the international treaty project, the newly built multifunctional modular patrol ships for the Bulgarian Navy will acquire the capability to provide reliable and tamper-resistant satellite navigation through the installation of GPS modules with M-code support for military purposes on board, as stated in the explanatory memorandum to the bill presented by Deputy Minister of Defence Radoslav Iliev.

The international contract has a total value of BGN 2,499,936 excluding VAT and customs duties. The VAT due will amount to BGN 177,090. At the request of the Ministry of Defence, the term of its validity has been extended until October 31 this year in order to complete all national procedures for signing and entering into force of the agreement, Iliev said. He added that, according to the terms of the international contract, the equipment is to be delivered by the end of the second quarter of next year.

The funds needed to carry out the agreement are within the defence spending for that year, including funds received under an agreement between the Ministry of Defence and Denmark, as well as other aid and donations from joint cooperation in the field of defence, and for 2025 they are within the planned capital expenditures in the budget of the Ministry of Defence, Iliev noted.

In response to a question from MP Assen Vassilev (Continue the Change- Democratic Bulgaria), the Deputy Minister explained that this would not be the last device to be purchased. Iliev pointed out that the project was large and complex and that there were many systems on board. ”We are witnessing how some technologies develop over weeks or months and the next generation comes into service. These are processes that cannot be said to end with the acquisition of the product on the current date or on the date of payment,” he said.