Fleet Modernization: Bulgaria Approves GPS Contract

The Bulgarian parliament approved a key contract for the modernization of the navy.

Ratification of a modernization contract

The National Assembly gave the green light to a draft for the ratification of an international treaty concerning the acquisition of modern technology for the Bulgarian Navy. The Budget and Finance Committee unanimously supported the bill, submitted by the Council of Ministers, with 16 votes "for" and 3 "against".

The bill, entitled "GPS Module providing support for "M-code" for military purposes", is a Letter of Offer and Acceptance (LOA) and is essential for the modernization of the Bulgarian Navy.

Contract details

The contract is an integral part of the priority project of the Ministry of Defence "Acquisition of a multifunctional modular patrol vessel for the Navy". According to the reasons presented by the Deputy Minister of Defence, the integration of "GPS modules with M-code support for military purposes" will provide the new patrol vessels with reliable and interference-resistant satellite navigation. This advanced GPS module is key to their efficient operation.

The value of the contract is significant, amounting to 2,499,936 leva excluding VAT and duties. VAT amounting to 177,090 leva is added to this amount. In order to ensure the implementation of national procedures for signing and entry into force, the validity period of the contract has been extended to October 31 of the current year, as indicated by the Deputy Minister. The delivery of the equipment is expected to be completed by the end of the second quarter of next year.

Financing and future plans

The project is financed through funds from the defence budget for the respective year. Additional funds have been raised through an agreement with Denmark, as well as other aid and donations received within the framework of joint cooperation in the field of defence. For 2025, the funds are included in the planned capital expenditures in the budget of the Ministry of Defence.

Deputy Minister Iliev emphasized that this is not the last purchase of equipment for the new patrol vessels. The project is complex, involving many systems, and technological developments in the field of satellite navigation necessitate continuous updating. Therefore, the modernization processes will continue after the completion of this contract. He explained that the rapid development of technologies makes it necessary to modernize the systems. This further highlights the importance of this contract as a first step in a long-term process of modernizing the Bulgarian Navy.