TAIPEI (Taiwan News) — The Ministry of National Defense has signed six military procurement award contracts with the American Institute in Taiwan, including one covering the joint production of large-caliber ammunition, reports said Wednesday.
Following a decision by the Legislative Yuan, the government was allowed to sign Letters of Offer and Acceptance with the US even if the budget review for the weapon systems had not been completed, CNA reported. Discussions about arms procurement and the government’s proposal for a NT$1.27 trillion (US$40 billion) special defense budget were still continuing at the Legislative Yuan.
The first of the six arms deals mentioned Wednesday was a missile-related package for the Army valued at NT$5.32 billion under a contract running from April 9 until March 31, 2030.
A second award covered air defense services, including work by advisers, valued at NT$22.87 million. The contract, signed by the military’s mission in the US and AIT, runs from April 8 until the end of 2030.
The third item included anti-armor missiles for the Navy valued at NT$5.12 billion, with the contract running from April 10 until September 2030.
The fourth award signed by the two sides covered self-propelled artillery valued at NT$73.89 billion under a contract from April 10 until the end of 2034. The package included M109A7 Paladin self-propelled howitzers, per CNA.
Long-range precision strike missiles formed the fifth item, valued at NT$123.53 billion under a contract valid from March 24 until December 2032, CNA reported. Both items were destined for the Army.
The sixth and final award on the list was joint production of large-caliber ammunition. The price tag was set at NT$910.44 million, and the contract is valid from April 9 until Feb. 28, 2029.
Joint production meant that the ammunition could eventually be exported by Taiwan and enter the US supply chain, the Liberty Times reported.
As legislators had not reached a consensus on maximum budget limits and the nature of the weapons systems to be procured, the Legislative Yuan was to continue negotiations on the subject Thursday.
