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(Bloomberg) -- German lawmakers will sign off in early July on government plans to buy 60 Boeing Co. Chinook helicopters and three maritime surveillance vessels for a total of more than €11 billion ($11.9 billion), according to people familiar with the plans.
Chancellor Olaf Scholz’s governing coalition has asked for approval to spend €7.2 billion on the 60 CH-47F helicopters, together with an additional €750 million for infrastructure and maintenance, according to a government document dated Thursday seen by Bloomberg.
Due to cost overruns, it has also requested permission to increase the funds allocated for the three ships — manufactured by Bremen-based NVL BV & Co. KG — to about €3.45 billion from €2.1 billion, the people said. The budget committee of the Bundestag, or lower house, is scheduled to approve the spending at a July 5 meeting, they said.
The big-ticket procurements are part of Germany’s effort to expand and modernize the armed forces triggered by Russia’s invasion of Ukraine.
They will be financed from a special €100 billion fund established last year to boost military spending, on top of the regular annual defense budget of about €50 billion.
A Boeing spokesman said the company is looking forward to working with the US and German governments to finalize the helicopter sale.
A spokesman for NVL declined to comment on the cost of the ships and pointed to a 2021 statement on the order.
--With assistance from Alexander Pearson.
(Updates with Boeing order value as per government document in second paragraph.)
©2023 Bloomberg L.P.
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