Today the Government of the Republic of Panama and Finmeccanica reached a settlement that puts an end to disputes relating to contracts allocated in 2010 to the company Selex ES and to Telespazio, as part of the intergovernmental agreement dated 30th June 2010 between the Republic of Panama and Italy. Together with another contract allocated to the company AgustaWestland, the contracts are designed to provide the Central American country with an integrated coastal surveillance system to counter illegal trade.
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 the contract allocated to Selex ES for a radar surveillance system, in relation to which the Republic of Panama will have the right to purchase helicopters or other equipment from Finmeccanica.
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.