Germany is advancing its proposal to supply Type 209NG submarines to the Argentine Navy, competing with a French offer for Scorpène-class submarines. The German government may approve $4.27 billion in guarantees to support TKMS’s bid. Financing is crucial, with budget proposals reflecting Argentina’s need for substantial loans for submarine acquisition. Delivery of the German submarines is projected for 2034-2035.
Germany is intensifying its efforts to equip the Argentine Navy with TKMS Type 209NG submarines, amidst ongoing processes to acquire new attack submarines. Although a Letter of Intent for Scorpène-class submarines was signed, the supplier selection process remains uncompleted. Recent reports suggest that the German government’s approval of guarantees to bolster TKMS’s proposal is progressing, as Argentina seeks to enhance its submarine capabilities.
The Argentine government is currently reviewing two main proposals to restore its Navy’s submarine force. The French company Naval Group proposes Scorpène-class submarines, while TKMS offers Type 209NG submarines. Both offers entail the delivery of three submarines, supported by their respective governments. In 2023, a Letter of Intent was confirmed with Naval Group, setting the stage for future negotiations while leaving room for revised proposals from other companies.
Significantly, the German government is expected to approve state guarantees amounting to approximately $4.27 billion to support TKMS’s submarine proposal for Argentina. Financing is critical in making a decision between the two bids, and the 2025 Budget Proposal reflects this urgency, indicating a need for loans of $2.3 billion for the submarine acquisition program.
It is pertinent to note the projected delivery timeline for TKMS submarines, expected between 2034 and 2035. The German government’s Budget Committee is anticipated to finalize the approval of the guarantees in the coming weeks. However, negotiations related to these acquisitions have maintained a low profile due to the necessity of executive branch authorization and the Ministry of Economy’s strict fiscal policies.
Germany is navigating a critical phase in affirming its submarine sales to Argentina amid existing proposals from competing firms. Recent developments in defense acquisitions reveal intricate negotiations and financing challenges that could significantly impact the decision-making process, including the alignment with Argentina’s broader economic policies and budget constraints. The initiative to bolster naval capabilities reflects wider strategic considerations within Argentina’s defense framework.
In summary, Germany is poised to reinforce the Argentine Navy with TKMS Type 209NG submarines, as the defense procurement process for new submarines proceeds. The selection remains competitive with proposals from Naval Group, highlighting the pivotal role of financial backing and governmental support in determining the outcome. The expected timeline for submarine delivery and budgetary considerations will further shape future negotiations.
Original Source: www.zona-militar.com
