Brazil says to resume figther jet tender in 2004

www.forbes.com Reuters, 03.14.03, 7:30 PM ET

BRASILIA, Brazil, March 14 (Reuters) - Brazil's Defense Minister Jose Viegas said on Friday the country's tender to purchase up to 12 supersonic fighter jets for $700 million will restart next year. One of the first decisions by the new centre-left government of President Luiz Inacio Lula da Silva when it was inaugurated in January was to suspend the purchase of the fighters in order to devote more funds to fighting poverty. But Viegas told Reuters in an interview on Friday that "next year the process will start again," to buy the fighters. There had been some speculation that the purchase could be shelved for a longer time than next year because of Brazil's tight public finances. Viegas said that the offers already made by heavyweight bidders such as Lockheed Martin Corp.(nyse: LMT - news - people), Sweden's Saab <SAABb.ST> and BAE Systems Plc <BA.L>, are still valid. "The things which were already presented are valid, the work already done is valid," Viegas said. "We will invite the participants to represent their offers. After a year there may be technological developments, there could be developments on off-sets." Viegas said just the companies that had passed through to the second stage of the bidding would be invited to make their offers again. They are Lockheed with its F-16 fighter, Sweden's Saab and BAE with Saab's Gripen jet and a joint offer by Brazil's Embraer <EMBR4.SA> (nyse: ERJ - news - people) and France's Dassault Aviation SA <AVMD.PA> with a special version of the Mirage strike plane. Russia's Sukhoi is bidding with its Su-35 "Super Flanker" fighter.