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16 December, 1998
The government yesterday chose the Swedish firm Ericsson for four airborne radars at a cost of US $575 million, part of a major program currently aimed at strengthening the capability of all three branches of the armed forces.
The decision was announced by Defense Minister Akis Tsohatzopoulos, following a meeting of the Government Council for Foreign Affairs and Defence (KYSEA) that was chaired by Prime Minister Costas Simitis.
The radar systems are expected to be delivered in 45 months, Mr. Tsohatzopoulos said. In the meantime, Greece will receive a system that will enable crews to be trained in the new system.
The Erieye radar system will be fitted on the Brazilian-made twin-propeller "Embraer 145" aircraft.
KYSEA also said it would take a final decision on the purchase of new fighter aircraft for the Hellenic Air force at its next meeting, at the end of January or early February.
The main contenders for a lucrative fighter jet contract are the French Mirage 2000-5, the Eurofighter 2000, the US-made F-15 and F-16 (block 50+) and Russia's Sukhoi 27.
Gov't spokesman:
Government spokesman Dimitris Reppas said later that the price for the radar systems would be about $570 million, which included pilot training costs, spare parts and support.
However, he added, a final price - possibly lower - would be announced after talks.
Spending for this item has been accounted for and will not further burden the budget, he said, adding that the acquisition was one which the economy could shoulder.
Mr. Reppas said KYSEA also discussed replacing the air force's transport C-130 planes with lower maintenance and cost aircraft.
Meanwhile, in an ANA dispatch from Sweden, commenting on the Greek government's decision to purchase the Eireye radar tracking system, the general director of Ericsson Microwave System, Jan Oke Kark, said "it is one of the biggest orders that Ericsson has ever received and I believe that further negotiations will have a small duration and a favorable conclusion."
The director of Ericsson's AEW System department Lenard Yewelson said the order will create about 100 new jobs in Sweden but in coming years jobs will also be created in Greece, where the system will ultimately be assembled and fitted onto aircraft.
Brazil has already ordered the same type of radars by virtue of a contract signed two years ago while their delivery is due to start in 1999.
News of the Greek government's decision has been dominating the Swedish mass media as of yesterday afternoon.
Source: Athens News Agency
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