Norway Seeks $1.2B for Fighter, Missile Projects

12 May 2011 By GERARD O'DWYER DefenseNews

HELSINKI - The Norwegian government has asked the Storting, the national parliament, to approve $1.2 billion in capital funding to cover four military projects, the two biggest of which are acquisition of four F-35 Lightning 11 trainer aircraft and phase-2 financing for the Joint Strike Missile (JSM) project.

The F-35 trainer procurement project carries a budget of $873 million, with delivery to the Norwegian Air Force's pilot-training wing due to take place in 2016, two years ahead of the main delivery of the U.S. multirole combat aircraft. The $873 million includes logistical support and operation costs in the plane's initial years.

The acquisition of the four trainer jets will ensure that instructors are ready when the main F-35 deliveries begin in 2018, said Defense Minister Grete Faremo.

"It is also important that we maintain a satisfactory operational combat aircraft capacity in the transition phase between the F-16 and F-35," Faremo said.

The government intends to present a total picture of the procurement program, including costs, number of aircraft to be acquired, location of aircraft, industrial development expectations, financing plans and authorization for contract negotiations, to the Storting in the first half of 2012, Faremo said.

The government has sought budgetary approval of $187 million to cover phase-2 development costs on the JSM program. Norway's investment is based on the rationale that the JSM is the only weapon in development that meets the operational requirements for a long-range missile with land and sea capability that can be carried inside the F-35.

"The JSM is important both to satisfy key operational requirements, while the development of the missile can open significant industrial opportunities for Norway. The potential for an industrial venture is present," Faremo said.

The overall financial framework for projects submitted for approval also includes funding to construct new Border Guard bases and stations in Svanvik and Storskog; $49 million has been budgeted for this project.

Elsewhere, $27 million in new funding is being sought to construct housing in Jorstadmoen for the Norwegian armed forces' core information technology and communications units.