Defense Minister Nikos Dendias announced that Greece will sign contracts for the acquisition of a fourth FDI Belharra-class frigate within 2025. “We are nearing the completion of negotiations for the acquisition a fourth frigate FDI, the Themistoklis,” Dendias said during the launching ceremony of the third Belharra frigate, F-603 Formion, in the Naval Group shipyard in Lorient, France, on Wednesday.
According to state-run news agency amna, the upcoming contract will be supplementary to the original order, with Greece exercising its option to acquire a fourth vessel at a cost of under €1 billion.
Dendias also revealed that Greece has secured industrial returns equal to 25% of the frigate’s value.
This means that one-quarter of the expenditure will be reinvested into Greek industry, either through other programs run by the manufacturing company or through follow-on support services for the Greek frigates.
For the first time, all three Greek FDI frigates, F-601 Kimon, F-602 Nearchos, and F-603 Formion, were showcased together, moored side by side along the banks of the Scorff River.
It should be noted that the “industrial returns equal to 25% of the frigate’s value.” is a nominal figure. It happens through what is known as the “offset programme” and the “inward investment programme”.
France supplies Greece with something Greece wants, lets say a radar system. The purchase value of that radar system today would be €1 million. Under the “offset programme” a multiplier is used so the system is valued at 4x its price, i.e. €4 million. What France delivers is a radar system that has been in use in France for several years and is now surplus to their requirements. Realistic value €100,000.