Panama Settles Contracts Dispute With Finmeccanica

The Government of the Republic of Panama and Finmeccanica today reached a settlement related to the contracts awarded to the companies - Selex ES and Telespazio.

The settlement reached by the Republic of Panama and Finmeccanica involves an extension to the original contract allocated to Telespazio for a digital mapping system for Panama, as well as the consensual termination of a $125 million contract allocated to Selex ES for a radar surveillance system in 2010, in relation to which the Republic of Panama will have the right to purchase helicopters or other equipment from Finmeccanica.

In addition to contract awarded to AgustaWestland, the contracts are designed to provide the Central American country with an integrated coastal surveillance system to counter illegal trade, Finmeccanica said in a press release on Wednesday.

The decision of the Republic of Panama Government is not related to the quality of the radar systems supplied by Selex ES, but stems from a separate reassessment of the overall surveillance system for the country's coastal area.

Moreover, under the settlement, Finmeccanica will provide an AgustaWestland helicopter ambulance, free of charge, to the Republic of Panama.

The Government of the Republic of Panama undertakes to withdraw the disputes from the Supreme Court of Panama; request their termination, and re-launch business relationships with Finmeccanica in a spirit of renewed trust.