Gaye Davis
SPAIN’s counter-trade proposals if South Africa gave it the contract to supply four corvettes amounted to a “rand for rand deal” but would first have to be closely scrutinised by cabinet, Deputy Defence Minister Ronnie Kasrils said this week.
In terms of the offer, South Africa would be able to pick counter-trade proposals from a menu of 18 programmes valued at more than 400 percent of the sum Spanish ship-builder Bazan will charge South Africa for supplying four corvette
That figure remains confidential but is understood to be nearer R1-billion than the R1,69-billion budgeted for by the SANDF as weaponry and electronics systems will be installed locally.
The menu of programmes includes offers to set up a deep-sea fish-processing factory (worth R500-million), to buy fish (R300-million) and build fishing vessels in South Africa, with Spain offering a concessional loan of R375-million to help fishing communities buy their own vessels.
“If it is as concrete as it looks then it’s very attractive,” Kasrils said. Other “offset deals” include Spain buying coal worth R2 231-million; buying the materials with which to build the corvettes (R91,8- million); a R260-million offer relating to the transfer telecommunications technology; and a R250-million grant to develop tourism.
The proposals were announced in Cape Town this week by Bazan and officials from Spain’s Institute of Industry. Bazan is competing with Scottish shipyard Yarrow to win the tender. Reports this week said Yarrow had also offered a 100 percent counter-trade package, focused on helping local industry through investment and technology transfer and Reconstruction and Development Programme support.
Kasrils said the corvettes made by both yards were of world-class, “so the counter-trade argument will be what counts”. Asked to confirm whether deputy presidents Thabo Mbeki and FW de Klerk had been tasked to ensure there had been no breach of the tendering process in response to complaints from countries eliminated along the way, Kasrils said: “We believe in transparency, so we are prepared to go the extra yard to assure the public and competitors that the process has been an honest one.”
Cabinet was this week briefed on the tender process, cabinet secretary Jakes Gerwel confirmed.