Romanian Defence Ministry asks for EUR 8.5 M default interest over delayed delivery of Piranha V

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The Romanian Defence Ministry has issued a bill of default interest of EUR 8.5 million to the American producer of Piranha V armoured wheeled vehicles that are to be delivered to the Romanian Army.

The Romanian Defense Ministry signed the contract with the US General Dynamics the contract allowing the Romanian state to purchase 227 Piranha V armoured wheeled vehicles in January 2018, while the first armoured wheeled vehicles should have been delivered since February this year.

“The Ammunition Department has kicked off the procedure to release the default interest bill considering the delays of the US producer in delivering the products. There have been almost 8 months since we should have had the first 36 complete vehicles delivered. The bill for the interest on late payments mounts to EUR 8.5 million“, DefMin Gabriel Les said.

According to the contract signed last year, the first 36 vehicles should have reached Romania in early 2019, while the rest of 179 will be made at the Uzina Mecanica in Bucharest.

“The Romanian Defence Ministry signed with GDELS-Mowag (General Dynamics European Land Systems – Mowag GmbH)a framework agreement to supply the Romanian Army with 227 Piranha V armoured wheeled vehicles  for troops and initial logistics support, with the total value of the agreement being of approximately EUR 868 million“, according to a press release.

 

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