LIMA 2015 Day 3: Contracts Confusion

LANGKAWI: Day 3 of LIMA 2015 kicked off with the contract signing ceremony, the true highlight of any airshow. As duly reported previously by Malaysian Defence, the deal for the MMEA’s New Generation Patrol Craft (NGPC) was one of the highlights of a rather sombre ceremony.

“Please take note that the contract cost listed here stand to be corrected as the Defence Ministry did not provide the media with a written statement apart from the listing of the contracts and parties involved as announced by the emcee, prior to the contract, LOI and LOA signing ceremony. ED

Destination Marine Services Sdn Bhd received the Letter of Intent for the supply of the six NGPC for the MMEA, a deal worth RM384 million.

Colombian Coast Guard 40 metre patrol boat
Colombian Coast Guard 40 metre patrol boat

And yes, the Fassmer 43 metre boat design is the solution for the contract as reported by Malaysian Defence previously.

Remember the PFI deal for helo basic training? The LOI was issued for “the helicopter rental services” of six Airbus Helicopters H120 (formerly known as EC120) to replace the Alouette III.

Airbus Helicopters H120.
Airbus Helicopters H120.

The RM120 million deal was awarded to Gading Kasturi Sdn Bhd, a little known aviation company. According to the company’s website, Gading Kasturi is a joint venture cooperation between Gading Sari Holdings Sdn Bhd and Mycopter Aviation Services Sdn Bhd.

RMAF chief Datuk Seri Roslan Saad told Malaysian Defence, that the deal was expected to be seal once the contract details were finalised. He said the first helicopter is expected to be delivered soon.

The two LOIs were part of the six LOIs, 8 LOAs, 7 contracts and 5 MOUs worth according to Defence Minister Datuk Seri Hishammuddin Hussein was worth some RM9.3 billion.

The highest value LOI was between CTRM Aero Composites Sdn Bhd, a member company of DRB-Hicom Bhd and UTAC Aerospace for the manufacturing and supply of composite components for the Boeing 787 Dreamliner and V2500 components for the Airbus A350.

The LOI is for the extension of the current contract which is worth RM4.2 billion and the new tenure is expected to be 7 years with an annual turnover of RM350 million. (The emcee had earlier announced a much lower amount which led to confusion when the final figures was announced. Hence the sub-title)

The biggest deal for the Defence Ministry at the ceremony was the LOA for the supply of spares and services of MTU engines for the RMN with MTU Services Sdn Bhd, worth some RM650 million.

Meanwhile, Airbus Military was awarded a contract worth some RM263 million, an amendment to the contract to procure the A400M back in 2005. The additional funds is to cover the A400M in service support and maintenance (ISS) programme.

RMAF sole A400M M55-01 on display at LIMA 2015.
RMAF sole A400M M55-01 on display at LIMA 2015.

Other contracts were those awarded to Pilatus Aircraft (5 PC 7 Mk II turbo prop trainer, RM163 milion), Thales for the supply of optronic and communication equipment for the Sukhoi Su-30MKM fleet (RM50 million), CTRM Aviation Sdn Bhd for composites repair and composites engineering capability for RMAF (RM15 million) and Destini Prima Sdn Bhd for the supply and services of life-raft and life jackets of RMN (RM8 milion).

The Malaysian Armed Forces and Petronas also inked an MOU for the hand over an UAV system (the emcee announced the UAV is the Scheibel Camcopter). Asked about further details on the MOU on whether the Camcopter had been selected and its value, Hishammuddin was unable to do so apart from saying that it was a way for the private sector to assist the government to provide better security especially in Sabah.

Schiebel Camcopter on display at LIMA 2015.
Schiebel Camcopter on display at LIMA 2015.

Industry sources told Malaysian Defence, discussions on the project was still on going and if finalised “it will probably involved one Camcopter system with two air vehicles and a ground control station.

As mentioned in previous postings, the other LOIs and LOA are mostly for the support and maintenance of assets operated by the Armed Forces from radars to ships. The companies involved are Zetro Services Sdn Bhd (radars, ATC and air defence equipment), Boustead Naval Shipyard (RMN 17th PV squadron), Thales Raytheon Systems (maintenance of MADGE 3), D Aquarian Sdn Bhd (RMN), Multi Media Consulting Sdbn Bhd (HR MIS), BHIC Bofors Asia Sdn Bhd (Bofors 57mm cannon, RMN) and Saab Grintek Defence PTY Limited (MAWS and LWS for the Flankers).

RMAF Sukhoi Su-30MKM M54-16 returning to its parking spot after the display at LIMA 2015.
RMAF Sukhoi Su-30MKM M54-16 returning to its parking spot after the display at LIMA 2015.

LOIs recipients include Malaysia Airlines and Air Asia (air charter and troop movement between peninsular, Sabah, Sarawak and Labuan and vice versa) and Ajensi Tulin Sdn Bhd (ZF gearbox for RMN).

MMEA also awarded a contract to FEHM Entity Sdn Bhd to supply, install and commissioned “a complete search and rescue COSPAS-Sarsat Sytem for ground segment and SAR management.”

— Malaysian Defence

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