The agreement provides for the participation in the modernization of Taiwan's AIDC 145 F-16 A / B for $ 3.7 billion. Not disclosed, however, that the work would make Taiwanese company.
The agreement may be a sign of U.S. approval for Taiwan to buy 66 new F-16 C / D Block 50/52. Taiwan unsuccessfully sought from the U.S. to sell these fighters since 2007. The reason for refusal is Beijing's opposition to increasing the military capabilities of the island, considered by the PRC as a rebellious province.
The contract for the modernization of 145 fighters to be finalized within a few weeks. It is doubtful, however, that the Americans committed AIDC to work on the integration of radar scanning phase. Is also unclear who will fund the work associated with the preparation and implementation of a new modernization package, or what the scope of work will be performed by the AIDC. If the contract is signed, Taiwan will pay for the modernization of 12 years.
Total price for Taiwan approved a package of spare parts and military equipment from the last 2 years is 12 billion. Then there are outstanding because of budgetary problems, the agreement of 2008 and 2010 for the amount of $ 13 billion.
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