Czech Government has awarded $620 million contract to Steyr for 107 Pandur armoured carriers

The Prime Minister Mirek Topolanek told in a news conference that Czech government approved the purchase of 107 wheeled Pandur II armoured personnel carriers (APC) from Austrian firm Steyr. According to him the contract is about 14.4 billion crowns (approx. $620 million). "About 153 percent of offsets have been agreed. Most of them, I would say, are direct offsets. A number of Czech firms will take part in the production," Topolanek said. The purchase of the APCs has been talked about since 2003. Topolanek said that the delay has caused the military marked problems with operational capabilities at home and mainly in foreign missions. Topolanek said money has been earmarked for the purchase in the state budget. "The keeping of the average unit price agreed during the negotiations was a condition for the contract," he said. The then government agreed with the purchase of 240 APCS in 2003. Steyr, which is part of General Dynamics, won the tender in 2006 and the agreed price exceeded 23.5 billion crowns. In 2007 the government decided to withdraw from the contract after Steyr failed to keep the contract conditions. In January 2008, Steyr was given one more chance to supply a lower number of APCs, however.