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Tuesday, March 23, 2010

Contract on Scorpene submarine maintenance yet to be signed

Scorpene class submarineThe government has yet to formalise the Integrated Service and Support (ISS) contract with Boustead DCNS Naval Corp Sdn Bhd (BDNC) for the maintenance of the Royal Malaysian Navy’s two Scorpene submarines.

Defence industry sources told The Malay Mail that although Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi had told Parliament last week that the cost of maintaining the submarines had been capped at RM270 million per year, no formal agreement had been signed.

According to the sources, it is still unclear whether BDNC is agreeable to the new arrangement. Officials from BDNC declined to respond when contacted by The Malay Mail.

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