Germany is reinforcing its bid to supply TKMS Type 209NG submarines to the Argentine Navy. The Argentine Ministry of Defense is assessing competing proposals, including a Letter of Intent for Scorpène-class submarines from France. Financing is critical in the selection process, with German guarantees likely to amount to $4.27 billion, while delivery of the submarines may not occur until 2034-2035.
Germany is reaffirming its commitment to equip the Argentine Navy with TKMS Type 209NG submarines. The Argentine Ministry of Defense seeks to finalize the acquisition of new attack submarines, with significant strides made in 2024, including a Letter of Intent for Scorpène-class submarines. However, the evaluation and selection process for the final supplier remains ongoing as the government assesses various proposals.
Recent media reports suggest that the German government is moving forward with the approval of state guarantees to support TKMS’s proposal for Type 209NG submarines. Currently, the restoration of the Argentine Navy’s Submarine Force includes two key proposals: one from the French company Naval Group for Scorpène-class submarines and the other from TKMS for Type 209NG submarines. Both companies aim to provide three submarines each, with backing from their respective governments.
A significant development in 2023 was the signing of a Letter of Intent with Naval Group, which occurred during the Argentine Minister of Defense’s visit to France. While non-binding, this document facilitates future discussions. Nevertheless, other firms may still submit revised proposals, and governments may increase their support efforts based on evolving conditions.
According to a recent report by Reuters, the German government is anticipated to approve state guarantees worth $4.27 billion for TKMS’s proposal. The Argentine Defense Ministry has indicated that financing is a crucial element in determining the winning bid. The proposed 2025 Budget, which is unlikely to pass, suggests an extension of the current budget, which includes plans to secure $2.3 billion for submarine acquisitions.
It is important to note the projected delivery timeline for the German submarines, which is anticipated around 2034 and 2035. The Budget Committee of the German government is expected to make a decision on the guarantees in the coming weeks. Consequently, negotiations have been relatively subdued recently as the Ministry of Defense and the Navy undergo the necessary approval processes, requiring consent from both the Executive Branch and the Ministry of Economy, which adheres to strict fiscal policies.
The Argentine Navy is in the process of enhancing its submarine capabilities, focusing on acquiring new attack submarines. In 2024, the Ministry of Defense has made progress towards this goal, notably engaging with French and German manufacturers about two viable submarine options. The importance of financial backing from the respective governments is crucial in this high-stakes acquisition process, particularly in light of Argentina’s current fiscal policies.
In summary, Germany is solidifying its role in supplying Type 209NG submarines to Argentina amidst ongoing negotiations. The Argentine government is evaluating proposals, including one from France for Scorpène-class submarines. The decision weighs heavily on financing options, with Germany expected to provide substantial state guarantees. As discussions progress, the timeline for these acquisitions stretches into the late 2030s, pending budget approvals and governmental consent.
Original Source: www.zona-militar.com
