Sao Paulo: Brazilian President Dilma Rousseff will reevaluate a 10 billion real (Dh22 billion) plan to purchase 11 warships as she seeks to streamline government expenses, local newspaper Folha de S.Paulo said yesterday, citing people familiar with the decision.
Rousseff, who also is reviewing a plan by her predecessor and political mentor, Luis Inacio Lula da Silva, to buy at least 36 fighter jets, is concerned that the plans could derail her efforts to control a surge in government expenses, the newspaper reported.
The plan involves the purchase of 11 ships to patrol and protect Brazil's offshore oil finds, some of which are located more than 193km into the Atlantic Ocean.
Potential bidders for the plan include UK's BAE, France's DCNS and Germany's Thyssenkrupp, the newspaper reported.
South Korea's Daewoo group and Fincatieri of Italy were also seen participating, the paper said.
The Folha report comes a week after Reuters reported that Rousseff opted to "start over" in her evaluation process for the multibillion Air Force jet contract that involved the purchase of at least 36 fighter jets.
The surprise decision is seen as a blow to France's Dassault, which as recently as last month looked like a lock to quickly wrap up the deal, and puts its US Based rival Boeing clearly back in the running.
In 2009, Brazil and France signed an accord under which the South American nation agreed to purchase more than 20 billion reais in submarines and helicopters.
