GOV’T MAY FINALIZE LONG DELAYED MILITARY SATELLITE PROJECT

Today’s Zaman
Dec 19 2008
Turkey

Turkey’s top decision-makers on arms procurement met Thursday to
decide on the acquisition of a long-delayed Gökturk electro optical
satellite system worth around $250 million.

An Executive Committee (EC) meeting of the Turkish Undersecretariat
for the Defense Industry (SSM), the top decision-making body on arms
purchases, was held yesterday afternoon. The SSM meeting was chaired
by Prime Minister Recep Tayyip Erdogan, and Minister of National
Defense Vecdi Gönul and Chief of General Staff Gen. Ä°lker BaÅ~_bug
participated in the meeting.

This was the first EC meeting that BaÅ~_bug has taken part in as chief
of general staff. There have been expectations that BaÅ~_bug might
get involved more heavily in choosing the best system on the market.

BaÅ~_bug does not want to disregard the fact that Turkish technology
in some areas is not up to the highest standards and that a satellite
system relying on Turkish technology might end up being an unprofitable
product to be exported, said a Turkish defense industry source.

It is believed that BaÅ~_bug can contribute more to the selection of
weapons without causing a conflict with civilians. As Today’s Zaman
went to press, the EC meeting was still continuing.

At the top of the agenda was the acquisition of a satellite project,
the finalization of which was postponed twice since last year.

But because of differing opinions between the government and the
military — with the former said to be favoring the Italian proposal
and the latter, the German model — a selection among the competing
companies might not be made, Turkish defense industry sources
speculated.

EADS Astrium (Britain), Ohb-System (Germany) and Telespazio (Italy)
are competing in the satellite project. French Alcatel offers the
satellite’s camera system in the Italian proposal. The camera system,
which is the most critical component of the satellite, is required to
have a resolution below one centimeter and will feature the capability
for border surveillance.

Italian Telespazio has reportedly been the frontrunner in the project
from a technical viewpoint. A recent decision by the French Senate
to rule out a debate on a resolution blaming Turkey for the genocide
of Armenians in 1915 may play a factor in easing Turkey’s hard-line
approach on France’s contribution in the Italian offer, the same
sources said.

Israel’s IAI was earlier eliminated from the project when it has
imposed restrictions on Turkey, including a ban on the use of the
Israeli system in Israeli airspace and listing several countries that
Ankara is prohibited from selling the Israeli satellite.

The SSM issued a request for proposals (RFP) in August 2006 for the
acquisition of a 0.8 meter resolution reconnaissance and surveillance
satellite system, which would also include ground stations and
integration.

Contract requirements — such as maximum local content, technology
transfer and prior approval from the respective bidder governments —
have deterred US companies from participating in the tender.

The RFP conditions for the Gökturk satellite include a five-year
operational life with 97 percent availability, land and maritime
surveillance capability, and a secondary mission objective to meet
civilian satellite imagery requirements. The program should also
directly involve Turkish engineers and image specialists.

Turkish Air Force Commander Gen. Aydogan Babaoglu said in July that
Turkey plans to launch a military observation satellite into space
in 2011.

The EC may also discuss the procurement of 84 general purpose
helicopters for which US Sikrosky and Italian Agusta Westland are
competing. The project is estimated to cost around $2.5 billion.

Decision-makers may also announce the winner of a project for the
acquisition of 2,720 tactical wheeled vehicles under four different
variants, including mine resistance personnel carriers for the Turkish
Armed Forces (TSK), to be produced with a maximum local input. Ten
local companies are competing in the project.

Turkish defense industry sources do not rule out the possibility that
the number of these projects might be halved because of the economic
crisis. "This number has already been high and not realistic,"
said a retired general. Turkey spends around $5.5 billion for arms
purchases yearly.

It is still unclear whether the government or the military will
announce any measures such as cancellation or delay of some of the
military projects due to the effects of the economic crisis.

According to the latest figures, gross domestic product (GDP) growth
slowed to a 0.5 percent crawl in the third quarter of 2008 compared
with the same period in 2007, representing a total increase of 3
percent for the first nine months of 2008. The same statistics put
the official unemployment rate at 10.3 percent.

In a related development, Gönul confirmed Thursday that an
Israeli-made searcher Unmanned Aerial Vehicle (UAV) crashed. Turkey
leased the searcher UAV when its Heron UAV was lost in July this year
during a mission in the Southeast.

Gönul denied a news report that one of the two Heron UAVs delivered
to Turkey late last month crashed. The ground tests of those Herons
are still continuing and the one lost was not a Heron UAV, he said.

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