26 Mar 03. BAE Systems has signed a contract to be prime contractor responsible for managing the regeneration and upgrade of two ex-Royal Navy Type-22 frigates being transferred to Romania under a government-level agreement.

BAE said the contract covers a phased approach, with the first phase undertaken in the U.K. and the second phase in Romania. A BAE spokesman said the first phase of the project is worth £116M , and of that amount, BAE will receive over £100m. The U.K.’s Ministry of Defence awarded BAE the contract, and BAE’s Customer Solutions & Support group is managing the project.

In the first phase, the Customer Solutions & Support group will be working with its two Portsmouth-based joint ventures – Fleet Support Ltd. and Flagship Training – in each of which BAE owns a 50% stake. Fleet Support will carry out the regeneration work and Flagship will train the Romanian crews to operate the vessels.

“We are also working closely with the MoD and Romanian authorities to define and plan the development of the necessary in-country support infrastructure, the involvement of Romanian industry and the transfer of technology, and we are looking forward to a long and successful relationship with the Romanian navy,” said Rory Fisher, the land and sea managing director of BAE’s Customer Solutions & Support group.