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Title : Spain Approves €1.8 Bn Order for Four S-80 Submarines
link : Spain Approves €1.8 Bn Order for Four S-80 Submarines

Spain Approves €1.8 Bn Order for Four S-80 Submarines

(Source: Spanish Prime Minister; issued Nov. 30, 2018)

The Council of Ministers on Nov. 30 authorized the modification of the execution order awarded by the Ministry of Defense to Navantia for the construction of four S-80 submarines, for an estimated value of 1,771,703,930.42 euros, as the basic conditions were altered essential aspects of the contract, both in terms of the technical characteristics and in terms of compliance and price.

This order of execution, which derives from the collaboration agreement signed between the company Izar Construcciones Navales S.A. (Navantia) and the Ministry of Defense, is a legal business excluded from the Consolidated Text of the Contracts Law of Public Administrations.

It subsequently suffered various modifications and vicissitudes in the execution, in such a way that the Navantia company in November 2012 communicated to the Navy the non-viability of the design due to a critical deviation in the weight control of the ship.

This situation forced us to focus all our efforts on finding the technical solution that would solve this problem and allow us to return the project to viability. This solution has

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already been reached, so it is necessary to implement it, and the modification of the Order of Execution of March 25, 2004 is required for this purpose.

The change is due to reasons of public interest, such as the interest of national defense, reaching strategic independence in an essential weapon, the technological and industrial development in Spain of the air-independent propulsion system (AIP), as well as economic and social reasons in the area of influence of the Navantia shipyard in the Region of Murcia.

The modification which has now been authorized has as precedent the agreement of the Council of Ministers of July 27, 2018, that modifies the limits of the acquisition expenditure commitments charged to future years and authorizes the increase of the Special Program of Modernization of the Armed Forces corresponding to the S-80 submarines.

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