Bulgaria’s plans to build two new Navy patrol ships have suffered a setback on December 20, when Defence Minister Krassimir Karakachanov announced that the only bidder for the 820 million leva (about 419 million euro) contract had pulled out.
The decision by Varna-based MTG Dolphin shipyard comes just days before the end-of-year deadline for finalising the contract.
Karakachanov said that the “real reason” for the decision was the decrease in the value of the contract – because of recent amendments to Bulgaria’s military procurement law, which mandated that such purchases would have to include value-added tax, the shipyard would effectively have to pay back 20 per cent of the 820 million leva in tax…/IBNA
Photo: Bulgarian Ministry of Defence
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