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The border security contract, signed in 2004, was directly
negotiated with a single source, skipping tendering procedures and was worth
650 million euros, with an option to sub-contract supplementary works
totaling 350 million euros.
The former minister of Administration and Interior (MAI), Marian Saniuta,
stated that the 2004 border security contract signed with EADS was never
questioned although it was never nor it is a masterpiece. The EADS contract
was supposed to secure Romania's borders with the neighboring countries in
view of the country's European Union accession in 2007. The current
government has criticized the EADS contract, saying it costs too much,
duplicates existing PHARE programs and employs outdated technology and
standards. At the end of October, the European Commission expressed its
concerns over Romania's capacity to finance the management of the future EU
border, underlining the importance both of acquiring reliable frontier
protection equipment and maintaining it. The European body included its
concerns in the country report, in Chapter 24 - Justice and Internal
Affairs.
According to Saniuta, the Social Democrat government created a joint group
between ministries and special services in 2001 for the integrated
management of the state border. This decided in 2004 to begin negotiations
with EADS. The former MAI minister stated that authorities chose to
negotiate with a single source, without a tendering procedure, adding that
this method was perfectly legal.
On the price of the contract, Saniuta stated that the feasibility study
set a price range of 680 to 800 million euros, and the German company EADS
made an offer of 692 million euros, which was later negotiated down to 650
million euros.
"Any commercial relationship implies negotiation, and re-negotiation, but
there is a long way to one billion euros," added Saniunta denying the
allegations that there was an additional clause for subcontracted works
worth 350 million euros. "It is time to stop the disinformation campaign,"
said the former minister.
Saniuta admitted that the EADS project involved duplication with existing
European programs for the Danube, Danube Delta and the Black Sea
surveillance systems, as well as radio communication systems in three
counties. However he denied that the costs were as high as the government
claims, instead quoting a figure of 60 million euros, which he said would
not be wasted. "The money would not be lost, but redirected to equipment,
aerial, naval and even ground mobility," Saniuta explained. "It would not be
the first time in Romania when charts are changed," he added.
According to the minister of Administration, Vasile Blaga, eliminating the
duplication would allow Romania to use an extra 450 million euros in PHARE
and Schengen funds.
"The contract was legal, worth 650 million euros and could not be exceeded
due to the government decision 1157 which regulates Romania's loan methods,"
concluded Saniuta.
Referring to the technology, Saniuta pointed out that there are two
systems in use in Europe: Tetra and TetraPol. Romania currently uses a
communication network operating the Phoenix system, which is based on the
TetraPol standard, employed by other European countries such as France,
Switzerland or the Czech Republic.
Following renegotiations, the authorities and EADS agreed to eliminate
all the provisions which duplicated European programs and decrease the
contract's value to 542 million euros. Other results of the negotiations
include an extended warranty period, from 12 to 18 months, and a faster
response time for malfunctions, between four and 72 hours, depending on the
affected part and its priority for the overall system.
Saniuta appreciated the new provisions, but pointed out that the
government will pay a price, as it has agreed to grant exclusive
post-warranty to EADS. Consequently, for first ten years after the warranty
period is over, Romania can acquire parts only from EADS.
Under the contract's stipulations, EADS will install high-tech surveillance equipment at borders (infrared TV cameras and sensors, IT equipment etc), create command and control centers, and equip over 180 headquarters and training centers for the Romanian Border Police.
