Bulgaria and the USA are making secret changes to the contract for the acquisition of the first batch of 8 F-16 fighter jets, which the Council of Ministers wants to be ratified by the parliament, but not to be published in the “State Gazette”.
This is clear from a draft law submitted by the government to the National Assembly on the ratification of an international agreement on Amendment and Addendum No. 2 to the international agreement (LOA) BU-D-SAB “F-16 Block 70 aircraft and related support” (F -16 Block 70 aircraft and associated support) under the US program for foreign military sales (Foreign Military Sales-FMS). It is stated that this treaty was signed on January 31, 2024 in Ohio, USA, and on April 12, 2024 in Sofia, but there must also be ratification by the parliament.
It is about changes in the contract, which was signed by the Minister of Defense on July 11, 2019 and was ratified by a law adopted by the 44th National Assembly on July 26, 2019. In 2019, the then Bulgarian government – the third cabinet ” Borisov”, paid 1.3 billion dollars or about 2.2 billion BGN under a contract between the USA and Bulgaria for the production and acquisition of eight F-16 Block 70 aircraft (six single and two two-seater aircraft). The package includes pilot and ground crew training, logistics, support equipment and military equipment. The first machines were supposed to be delivered in mid-2023, but due to problems with the supply of components from manufacturers outside the US during the pandemic, the deadline was officially extended and now the first aircraft should be ready by the end of the year, but will fasten in March 2025 because it will be used to train the technical staff.
In the reasons for the changes now proposed by the government, an attempt is made to tell what it is about, but this is done in such general terms that practically nothing concrete is understood.
It is explicitly stated that the amendments “do not increase the value of the international BU-D-SAB contract signed in 2019 and do not require additional contributions to the amount already paid in advance by us”. It is also claimed that the requirements for the capabilities of the F-16 Block 70 weapon system stated by the Bulgarian side are not “reduced or narrowed”.
Bulgaria has agreed two types of compensation for a total of 34.5 million dollars due to the delay in the delivery of the fully paid batch of the first 8 F-16 fighter jets.
The Government indicates that the main changes to the BU-D-SAB Amendment and Addendum No. 2 (LOA) contract can be grouped as follows:
- − Correcting timelines for the provision of relevant components and/or products and confirming related explanatory notes arising from contracts awarded by the US Air Force to relevant suppliers.
- – Reduction or increase of values of different lines under the contract in order to ensure adequate financing of the activities, as well as redirection of financial resources on newly created lines.
- − Change of suppliers of defense products and services compared to those specified in the request letter for the preparation of the draft contract BU-D-SAB (27.03.2019) due to technological or market changes.
- − Closing some of the lines due to lost necessity or due to the creation of new ones, and this does not lead to a reduction of potential capabilities.
- – Eleven new lines have been added, financed at the expense of pledged funds on the respective lines or by redirecting funds from other lines of the contract (existing or deleted).
- – Additional lines have been added to reflect specific FMS program requirements that have arisen.
According to the Council of Ministers, the signed international agreement “contains “controlled unclassified information” (Controlled Unclassified Information-CUI), which should not be made public by analogy with the main agreement signed in 2019. This also excludes the possibility of its promulgation in “State newspaper””. Given the need to ensure confidentiality in this regard, it is proposed that the National Assembly order that the international agreement on Amendment and Addendum No. 2 to LOA BU-D-SAB not be made public. 4 Such a possibility is provided for by the Law on International Treaties of Bulgaria, according to which the body that gives consent to bind Bulgaria to an international treaty can order in the act of binding that it not be promulgated, the cabinet states.
At a ceremony at the 162nd Squadron of the US Air Force, Captain Alexander Velinov was recognized as the first Bulgarian pilot to pass the initial F-16 training course. Although the ceremony took place modestly and informally, the results were huge, commented BGnes.
It is indicated that, according to information from the American side, immediately after the entry into force of the law on amendments to the contract, work will begin on the preparation of further amendments and additions to this and the other FMS contracts.
It is noted that the American program establishes a standard period of 2 months for signing contracts and additions and amendments to them. Given the requirements of the Law on International Treaties of the Republic of Bulgaria, compliance with this deadline is practically impossible. Therefore, the Ministry of Defense of the Republic of Bulgaria has requested an extension of the validity period by 60 days until July 17, 2024 and is awaiting confirmation from the American side. This additional extension of the period for entry into force under Bulgarian legislation in certain situations may lead to negative financial consequences (increase in the prices of products and/or services), delays in the implementation process and ultimately a change in the terms of delivery of the aircraft and their effective maintenance and use, the government wrote.
