Paris, Cairo ‘close to agreement’ on Rafale, FREMM deal worth 5-6 Billion euros
France and Egypt are ‘close to agreement’ on a large scale arms deal that could cost 5-6 billion Euros and include naval vessels and fighter aircraft, La Tribune reports.
The French proposal includes two FREMM multi-mission frigates worth 1.8 billion euros ($2.07 billion), to be built by DCNS, and 20 Rafale combat aircraft from Dassault, worth 3.6 billion euros ($4.15 billion). Both platforms will be armed with missile systems manufactured by MBDA.
The CEOs of these companies visited Cairo this week to promote the deal. This visit was the latest stage in the dialog between the two countries, which also included the visit of Egyptian President Abdel Fattah al-Sisi in Paris in November 2014, followed by a high level Egyptian delegation that discussed the deal for 10 days in December. A French delegation also travelled to Cairo last week, to discuss financial aspects of the project.
While Rafale has yet to strike its first export contract, FREMM, as a multi-national program has been more successful in this realm, providing vessels for three navies. If selected, Egypt would be the fourth FREMM operator after Italy, France and Morocco. Egypt intends to make the FREMM frigate the flagship of the Egyptian Navy and wants to acquire the two frigates as quickly as possible. In consequence, France is ready to deliver vessels currently on order for the French Navy, if the deal is signed soon. Egypt wants to have at least one ship for the planned inauguration ceremony of the expanded Suez Canal planned for 2015.
The Egyptian interest in the FREMM follows the acquisition of four Gowind 2500 corvettes for about one billion euros. The lead corvette will be delivered from France, while the remaining three will be built in Egypt.
The Rafale could be an alternative to Russian or Chinese aircraft the Egyptian Air Force needs to modernize its forces, which currently rely almost exclusively on the Lockheed Martin F-16 supplied by the USA. The latest acquisition of 20 F-16 Block 50/52 aircraft was approved in 2010, but was only partly delivered due a US embargo on weapons delivery to Egypt, which was imposed after the ‘Arab Spring’ of 2011, that lead to the fall of president Moubarak in 2011 and the military coup in 2013 that brought general Sisi to power. Although Washington has since approved the delivery of some of the embargoed weapons, Cairo has not been trusting Washington and is seeking reliable alternative sources.
Rafale seems to be a viable alternative, as Dassault is seeking orders to beef up its production line, which currently produces only one aircraft per month, stretching production of the remaining 43 aircraft ordered for the French Air Force and Navy until 2018, as the F3R upgrades will be introduced. http://defense-update.com/20150116_cairo_paris_arms_deal.html
France and Egypt negotiating Rafale fighter jet deal - newspaper
PARIS Thu Feb 5, 2015
(Reuters) - France is in advanced talks to sell Dassault Aviation-built Rafale fighter jets to Egypt for around 6 billion euros ($6.88 billion), Les Echos newspaper reported on Thursday.
Despite exclusive negotiations with India for the last three years, Dassault has still not found a foreign buyer for its multi-role jet, the Rafale, billed to be one of the most effective and sophisticated fighter jets in the world, but also one of the most expensive.
The business daily said the two countries were close to finalising a deal for 24 jets and a naval frigate worth 5 to 6 billion euros.
The deal could be financed by as much as 50 percent through a credit facility arranged by French credit insurer Coface.
A spokesman for Dassault declined to comment.
Paris and Cairo have enjoyed close economic ties in the past but turmoil in the north African state since president Hosni Mubarak was overthrown in 2011 left Western governments wary of signing contracts, especially in the defence sector.
With the recent rise to power of President Abdel Fattah al-Sisi, ties have improved and both sides are concerned by the rise of jihadist groups in Libya and Egypt.
France secured its first major military contract in Egypt in about 20 years in 2014 with a 1 billion-euro (880 million pounds) deal to sell four naval frigates.
Senior French officials have repeatedly travelled to Egypt over the last year and Sisi in November undertook a state visit to Paris, where discussions were held about replacing Egypt's fleet of 18 Dassault-made Mirage jets.
Egypt was the first foreign buyer of the Mirage in 1981.
Dassault is under increasing pressure to sell the jet overseas. The French government said last year it would slow the pace at which it takes delivery of Rafale jets, taking just 26 over the next five years instead of 11 a year.
A French delegation in January visited New Delhi to salvage an agreement to supply 126 Rafale fighters to the Indian Air Force which has hit a snag over the local assembly of the planes.
French officials optimistic about Rafale sale to Egypt[size=1.3]Frank Gregory, Paris and Jeremy Binnie, London - IHS Jane's Defence Weekly
[size=1.3]10 February 2015
A French Air Force Rafale is prepared for a mission over Mali in 2013. (French MoD)
France is optimistic that it will secure a contract to sell Dassault Rafale multirole fighters to Egypt, the head of the General Directorate for Armament (DGA) said on 9 February.
"We are all smiles," Laurent Collet-Billon told journalists during the French defence procurement agency's annual press briefing. "We are optimistic even though there is still some work to be done."
Although he did not confirm reports that Egypt would order 24 Rafales, Collet-Billon said the first delivery could take place as soon as 2018.
The Rafales that Dassault is currently assembling for the French Air Force at its Mérignac facility are mostly two seaters with nuclear weapons-related equipment, but the company could start diverting French jets to Egypt once these are completed.
The Indian government has not taken the final decision on the purchase of Russian SU-30 aircraft yet, however, noted that the French jet fighter was costly.
NEW DELHI (Sputnik) — India still has not decided if it will purchase Su-30MKI multirole fighters over France's Rafale fighters, but the Russian jets are reliable and cheaper, Indian Minister for External Affairs in the North Eastern Region Vijay Kumar Singh told Sputnik on Thursday.
"The French jet fighter is costly. But as far as the SU-30 is concerned, it's cheap and reliable. The government has so far not taken the final decision," the minister said.
The statement came after the Indian Air Force said in January it could not confirm media reports that India wanted to scrap the Rafale deal with France and buy Russian jets instead.
Several local media outlets reported in recent days that India could pull out of a deal with France's Dassault Aviation on the purchase of 126 Rafale multirole fighter aircraft and go for Russian-designed Su-30 jets instead. Reasons cited by Indian media outlets included France's reluctance to pass on technologies to the Indian side and an increase in the price of the jets.
In January, a source in the Indian Defense Ministry told Sputnik that the country had not made a decision regarding the purchase of the Rafale jets. According to the source, Su-30s are seen as an alternative if the deal with France falls through.
[size=1.8]Air Platforms Irkut aims to complete Su-30MKI deliveries to India in 2015
[size=1.3]Jon Grevatt, Bangkok - IHS Jane's Defence Industry
[size=1.3]15 February 2015
[size=1.3]
The Irkut Corporation has stated that it will complete deliveries in 2015 of Sukhoi Su-30MKI multirole fighter kits to India's state-owned Hindustan Aeronautics Limited (HAL) as part of the Russian group's technology transfer obligations.
HAL has been licence building the Su-30MKI aircraft for the Indian Air Force (IAF) since 2000. Irkut said in a press release on 15 February that at the conclusion of deliveries later this year, the corporation would have transferred a total of 222 kits for assembly at HAL's Nashik facility in western India.
Supported by a "complete transfer of technology" Irkut said HAL is now manufacturing Su-30MKI parts from raw materials.
Egypt signs 5.2 billion-euro deal for French jets, ships and missiles
CAIRO Mon Feb 16, 2015 12:15pm EST
(Reuters) - Egypt signed a 5.2 billion-euro deal to buy French weaponry on Monday, Egyptian media said, in a move Cairo hopes will boost its military power as fears grow of conflict in neighboring Libya spilling over its border.
The agreement is for 24 Rafale combat jets made by Dassault Aviation, a multi-mission naval frigate, and air-to-air missiles.
Egyptian defense minister Sidqi Sobqi signed the deal with his French counterpart Jean-Yves Le Drian in a ceremony in the presence of President Abdel Fattah al-Sisi and a French delegation that included the manufacturers, state news agency MENA said.
(Reporting Ahmed Tolba; Writing by Shadi Bushra; Editing by Andrew Roche)
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A French Air Force Rafale is prepared for a mission over Mali in 2013. (French MoD)
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