Modernization of the Romanian Naval Forces: A Problem? – Autor: Amiral (rtr) PhD Aurel Popa
The modernization of the Romanian Naval Forces (FNR) represents a major challenge for the national defense strategy, given the importance of the Black Sea in the current geopolitical context. Although Romania has proposed an ambitious plan to equip the fleet, its implementation has been delayed or blocked for various reasons. Analyzing the causes of this failure and identifying future prospects are key to understanding vulnerabilities and potential solutions.
The corvette tender and the reasons for not finalizing the contract
The tender for the purchase of multifunctional corvettes for the Romanian Naval Forces was organized by the Ministry of National Defense (MApN) and was won in July 2019 by the French consortium Naval Group, in partnership with the Constanta Shipyard. The contract, worth €1.2 billion, called for the construction of four Gowind 2500 corvettes and the modernization of the two T22R frigates already in Romania’s fleet.
Reasons for not finalizing the contract
Despite Naval Group being named the winner, the contract was never signed, and in 2023 the Romanian government officially canceled the tender. The main reasons for the failure were:
- Financial and commercial disputes:
- Differences of interpretation on the final price and payment terms.
- The initial estimated price of €1.2 billion became insufficient due to rising material and equipment costs.
- Delays and refusal to sign the contract:
- Although Naval Group was officially named as the winner, negotiations dragged on for almost four years, without the parties reaching a consensus on the contractual terms.
- Legal problems and litigation:
- During the tender process, there were challenges from other bidders, including Damen (Netherlands) and Fincantieri (Italy).
- Legal disputes contributed to delays in the decision-making process.
- Geopolitical context and defense strategy:
- Due to the war in Ukraine, Romania reassessed its strategic priorities, focusing on land and air defense systems at the expense of naval forces.
- Instead of continuing with the Naval Group, Romania chose in June 2023 to participate in the European Patrol Corvette (EPC) project, a program run under the aegis of the European Defence Agency.
Current situation and outlook
Following the cancellation of the tender, Romania has decided to reorient its naval strategy, opting for:
- The purchase of two Offshore Patrol Vessels (OPV) with modern systems, including state-of-the-art missiles, at an estimated cost of €300 million.
- Joining the European Patrol Corvette (EPC) program to build four new corvettes.
3. Responsibility of the Romanian Naval Forces
The responsibility for the failure of the corvette tender cannot be attributed directly to the Romanian Naval Forces (FNR), as they were not the organizer of the procurement procedure and did not have direct competence in the final decision on the contract. The Romanian Navy is the beneficiary of such a procurement, but the Ministry of National Defense (MApN), through the Directorate General for Armaments, was the entity that organized the tender and negotiated the contract.
Factors exempting the Romanian Naval Forces from responsibility
- The FNR identified the operational need but did not manage the procurement:
- The Navy identified the need for a fleet of multifunctional corvettes as early as the 2000s, but did not have the authority to finalize the contract.
- The decision was taken at government and ministerial level, with the involvement of political-administrative structures.
- Decisions on the budget and negotiations were the responsibility of MApN and the Government:
- The tender was launched in 2016, awarded in 2019, but blocked by litigation and contract negotiations.
- Cost increases and lack of financial consensus were decided at government level, not military.
- Challenges and legal issues have slowed the process:
- Damen (Netherlands) and Fincantieri (Italy) challenged the outcome of the tender, causing administrative and legal delays.
- Legal and bureaucratic factors were beyond the control of the FNR.
- Defense strategy and reallocation of resources:
- Following the war in Ukraine, Romania’s priorities shifted to land and air defense systems, and the acquisition of corvettes became less urgent.
- Budget reallocation decisions were taken at ministerial and governmental level.
However, the FNR could have played a more active role in pressuring political decision-makers to expedite alternative solutions, such as modernization of existing ships.
4. General causes of the FNR modernization failure
Beyond the corvette tender, the modernization of the FNR has been delayed by several factors:
– Excessive bureaucracy and lack of continuity in decisions: Cumbersome administrative procedures and changes in strategy at the governmental level affected the progress of the projects.
– Weak domestic shipbuilding industry: Although Romania has competitive shipyards, the lack of firm orders and a stable investment plan has reduced their efficiency.
– International competition and lack of strategic consensus: International partnerships have been influenced by geopolitical factors, delaying negotiations for naval contracts.
5. Current modernization of the Romanian Naval Forces
Despite these challenges, Romania has implemented some alternative measures to improve naval capabilities:
– Acquisition of two offshore patrol vessels (OPV), equipped with modern systems, including anti-ship missiles and advanced radars.
– Joining the European Patrol Corvette (EPC) program, coordinated by the European Defence Agency, to build four modern corvettes.
– Modernization of Type 22R frigates, equipping them with new combat systems, armaments and sensors.
– Equipping with Naval Strike Missile (NSM) coastal missile systems to protect the coastline and maritime areas of strategic interest.
– Acquisition of two Sandown class minehunters to increase the capacity to combat sea mines.
– Modernization of IAR 330 Puma Naval helicopters, used for reconnaissance, search and rescue and anti-submarine warfare missions.
These measures represent an alternative strategy for enhancing maritime security and ensuring a balance of forces in the Black Sea region.
5. Conclusions
The modernization of the Romanian Naval Forces remains a complex issue, affected by economic, legal and strategic factors.The failure of the corvettes tender is an example of the bureaucratic and legal difficulties that can affect the modernization of the armed forces. However, recent new acquisitions and modernizations may indicate a change of direction, aimed at ensuring a more capable fleet adapted to new geopolitical challenges.
Footnotes:
1. Ministry of National Defense, “Romanian Naval Forces’ Strategy for the Romanian Naval Forces”, 2023.
2. Naval Group, “Annual report on international contracts”, 2022.
3. European Defense Agency, “European Patrol Corvette Program”, 2023.
4. Defense Romania, “Modernization of Romania’s Maritime Fleet”, 2024.
5. Defense Romania magazine, “Corvette auction issues for the Romanian Navy”, 2023.
Bibliography:
– Ministry of National Defense, “The Romanian Naval Forces’ Strategy for the Romanian Naval Forces”, Bucharest, 2023.
– Naval Group, “Annual Report on International Contracts”, Paris, 2022.
– European Defense Agency, “European Patrol Corvette”, Brussels, 2023.
– Defense Romania, “Modernization of Romania’s Maritime Fleet”, 2024.
– “Defense Romania” magazine, “Corvette tender issues for the Romanian Navy”, 2023.
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