BERLIN, Jan 29 (Reuters) - Two sources within Germany's budget committee informed Reuters on Wednesday that the committee is expected to sanction state guarantees amounting to 4.1 billion euros ($4.27 billion) to support Thyssenkrupp Marine Systems (TKMS) in securing an order for three submarines from Argentina.
Media reports suggest that a French shipbuilder is also a contender for the contract, valued at approximately 2.2 billion euros, which has not yet been awarded.
The proposed guarantees would encompass the construction and delivery of three Type 209 submarines by TKMS, inclusive of spare parts and training.
As per a budget committee document seen by Reuters, the shipyard is currently engaged in direct negotiations with the Argentinian defense ministry. Anticipated delivery dates are set for 2034 and 2035.
An essential precondition for Argentina to grant the contract to the German shipyard is the provision of credit financing with extended payment terms. The approval of the guarantees by the committee is scheduled for later today, according to the sources.
Thyssenkrupp Marine Systems has not provided an immediate comment.
($1 = 0.9602 euros)