Brazil to re-evaluate $6B Warships Plan

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Brazilian navy ship BNS Niterai (F40) sailing along U.S. Navy guided-missile cruiser USS Bunker Hill (CG 52) off the coast of Rio de Janeiro, Brazil. Photo: U.S. Navy

Following the delay in decision about the Brazilian Air Force future fighter, Brazilian President Dilma Rousseff will reevaluate a 10 billion real ($6 billion) plan to purchase 11 offshore patrol vessels for the Brazilian Navy, as she seeks to streamline government expenses, according to news agency Reuters quoting local newspaper Folha de S.Paulo, citing people familiar with the decision.

Brazilian navy ship BNS Niterai (F40) sailing along U.S. Navy guided-missile cruiser USS Bunker Hill (CG 52) off the coast of Rio de Janeiro, Brazil. Photo: U.S. Navy

The need for the new ships derive from growing offshore drilling at Brazils’ economic exclusion zone (EEZ), located more than 120 miles (193 km) into the Atlantic Ocean. Potential bidders for the program include BAE Systems from the U.K., Thyssenkrupp from Germany and the Franch DCNS company, which is already under contract since 2009 to build Brazil’s future submarines as part of an 20 billion reais arms procurement plan. Other bidders likely to join the tender include the South Korean company Daewoo group and Italian ship builder Fincatieri.