Portugal set to announce verdict on Eurocopter order

LISBON – Portugal is expected to announce today whether it will go
ahead with a threat to cancel a 34 mln eur purchase order for nine helicopters from EADS European Aeronautics Defence & Space Co NV unit Eurocopter because of delivery delays.
Portuguese press reported the defence ministry would unilaterally cancel the contract because Eurocopter had failed to agree on new compensation rules in the event of further delays in the delivery of the helicopters with full military certification.
The first EC-635 helicopter was supposed to have been delivered in July 2001, and all nine were to have arrived by March of this year, under the terms of the contract signed between Portugal and Eurocopter in 1999.
But so far none of the helicopters has been delivered.
Eurocopter has already paid Portugal 5 pct of the total value of the
contract in compensation for the delay in delivery.