Browne slams media for "inaccurate" reporting but admits helicopter contract is for TT$2.3B

The government of Trinidad and Tobago is denying media reports that its four new helicopters will cost more than two billion dollars and has accused the media of "inaccurate reporting".

Trade Minister Mariano Browne said Thursday the AW139 helicopters would cost US$93.5 billion, which is about TT$589 million, and not the $2.3 billion reported in the media last week. However he admitted that the overall contract for the aircraft would be more than TT$2 billion.

Browne was particularly critical of a Newsday editorial that demanded to know the details of the contract and asked whether the proper tendering rules were followed.

Read the editorial: Answers needed on helicopters

The Trinidad media and this blog reported the cost of the helicopter before the government made any mention of it. We learned about the contract from the website of the parent company of AgustaWestland.

This is what we reported on August 2, 2009:

"Italian defence and aerospace company Finmeccanica says its AgustaWestland subsidiary has won a contract worth US$348 million (TT$2.3 billion) to supply four AW139 helicopters to the Trinidad and Tobago government. The contract includes extensive training and logistical support for the country's Air Guard."

Our story stated that the average cost per helicopter is around US$25M, which is close to the minister's figure. And we also reported that the balance of the contract would be for training and logistics, which the minister said is accurate.

Read the story: Manning gov't buying four helicopters for $2.3 billion

Browne said the government pursued a rigorous selection and tendering process that included input and advice from a U.S. consultant with experience in procuring similar equipment for the US and other governments.

He was one of the people representing the Ministry of Finance on the procurement committee, which included the Attorney General, the National Security Minister and top representatives from the armed forces.

"The helicopters will not cost $2.1 billion, but will actually cost US$93.5 million or TT$589 million, less than quarter of the figure quoted in the (Newsday) editorial,” Browne said.

"The remainder of the cost will include training for 136 pilots, spare-parts, maintenance and the development of support facilities to accommodate the new equipment after it arrives.

“The contract requires the suppliers to provide up to seven years training and support for the new aircraft...All this money will not be paid at once to the supplier, and much of it will go towards other support systems and services needed for the helicopters," Browne said.

"The payment for those aircraft will be accounted for in the upcoming national budget while the other two aircraft will be delivered in 2011, and will be allocated in that year’s budget," he added.

He also talked about the specifications for the aircraft including the capacity to carry 15 passengers, a payload of up to 1500 kg and a flying range of 522 nautical miles.

Nothing the minister said contradicts the fact that government is investing US$348 million or more than TT$2 billion on the aircraft as reported by AgustaWestland and this blog.

The minister did not say why it is necessary to train 136 pilots for four helicopters or provide details of the kind of logistical support and spare parts needed to justify the expenditure of more than US$248 million or TT$1.5 billion.