(Initially published in www.romania-report.ro - Feb 18, 2005)
The Romanian Interior Ministry published the framework agreement concluded with European group EADS to secure Romanian borders - one of the most controversial deals closed by the Social Democrat government last year.
The “EADS contract”, classified until now, was made public following decision of Romanian cross-ministry group for State Border Integrated Management System, on February 14 this year.
The official reason for decassification was that both authorities and the public opinion should be aware of contract’s provisions taking into account the huge amount of public funds involved.
However, the annexes to the contract were not disclosed yet. Interior minister Vasile Blaga said he hoped to carry on the EADS project, provided re-negotiation of framework and prices shall be performed.
The contract re-negotiation, the Minister said, is necessary mainly because it overlaps with other border security programs financed through EU non-reimbursable funds and because, by the time Romania plans to join the EU in January 2007, the EADS border security system will not be able to cover the border with Ukraine – to become EU external border also. Blaga also said EADS is likely to accept re-negotiation.
According to the contract, the value of the deal between the PSD Government and EADS was worth at least Euro 650 million, VAT, excises and custom duties excluded. The contract says these taxes had to be paid by the buyer – i.e. the Romanian Ministry of Interior.
The contract also stipulated that in maximum 60 days (after the deal was signed on Aug 12, 2004) EADS had cu provide an offset proposal. No such proposal was made public so far. Also, even if Minister Blaga told the media that EADS officials supposedly agreed upon re-negotiating, a public statement on current stage of border security project in Romania is yet to be released by the European defence group.
Romania Report
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