Czech Republic, Sweden and BAE Systems Sign MoU for New Infantry Fighting Vehicles

Dec. 22, 2022

(Source: BAE Systems; issued Dec. 21, 2022)

Sweden will supply Prague with 210 vehicles in seven variants, as well as related services, at a cost of €2.14 billion. Slovakia signed a contract for the supply of 152 CV90 vehicles a few days ago, and a joint acquisition should bring a discount for both countries. (BAE photo)

PRAGUE, Czech Republic and FALLS CHURCH, Va. --- The Czech Republic, Sweden, and BAE Systems have signed a non-binding Memorandum of Understanding (MoU) that provides a framework for negotiations of an agreement to deliver CV90 combat vehicles to the Armed Forces of the Czech Republic. Contract negotiations will take place in the first half of 2023.

Under the terms of the MoU, the governments of Sweden and the Czech Republic will cooperate on military affairs including training, support and ongoing education for troops and equipment operators, as well as collaboration on the acquisition and support of CV90 combat vehicles. The agreement also lays out the possibility of future collaboration between the two nations on the development of upgrades, new technology and on-going support for the CV90.

The MoU specifies that the ongoing negotiations with BAE Systems will include: reaching an agreement for the purchase of 210 infantry fighting vehicles; meeting the need for indigenous long-term support for the vehicles; and, delivering on a requirement of a commitment for a robust Czech industrial participation program.

“We are very pleased with the progress we have made in our discussions with the Czech Republic and the Kingdom of Sweden,” said Tommy Gustafsson-Rask, president of BAE Systems Hägglunds in Örnsköldsvik, Sweden, which designs and produces the CV90. “We look forward to concluding contract negotiations in the new year, with the commitment to supporting the Czech Armed Forces in enhancing their defense and combat capabilities with the modern, combat-proven CV90.”

Under the proposed agreement, the Czech Army will receive the newest iteration of the CV90, known as the CV90MkIV, with the latest advanced capabilities and digital technology. The vehicle combines improved battlefield speed and handling with an upgraded electronic architecture to support future growth and meet the needs of the evolving battlefield.

The Czech Republic will become the ninth member of the CV90 User Club – which includes countries which have CV90s in service with their armed forces. The User Club already consists of eight countries, five of them members of NATO: Denmark, Estonia, Finland, Norway, Sweden, Switzerland, the Netherlands, as well as the newest member, Slovakia.

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The Ministry of Defense Takes Another Important Step Towards Purchase of IFV from Sweden

Dec. 22, 2022

(Source: Czech Republic Ministry of Defence; issued Dec 21, 2022)

Representatives of the Ministry of Defense of the Czech Republic, the Swedish government arms agency FMV and the Swedish IFV manufacturer BAE Systems, signed a joint memorandum of understanding. The document confirms the agreement of all three parties on the basic parameters regarding the acquisition of CV90 infantry fighting vehicles.

"Negotiations regarding the acquisition of the Swedish CV90 were started at the beginning of September, I consider the signing of the memorandum to be a fundamental event. I believe that it will soon result in the signing of the contract itself," commented Defense Minister Jana Černochová on the agreement. According to Lubor Koudelka, deputy for the management of the armaments section, who signed the memorandum on behalf of the Ministry of Defense of the Czech Republic, the document represents the basic areas for future cooperation between the Swedish and Czech sides in the operation of the IFVs.

All parties agreed at the same time that they will now make every effort to ensure that the previous cooperation results in the signing of a contract for the procurement of IFVs for the Czech army. According to the memorandum, the Czech Republic and Sweden are to conclude it by May 31, 2023.

Stockholm will not only supply Prague with 210 vehicles in seven variants according to the operational needs of the Czech Army, but will also provide related services, including military training for commanders, operators and technicians, in cooperation with the defense industries of both of countries. The CV90 supply contract will also contain specific parameters of the infantry fighting vehicle.

"The purchase price is also set in the memorandum, which will not exceed 51,684 billion. CZK (including VAT) and information on deliveries. The involvement of the Czech defense industry is also important: This will account for at least 40 percent of the total costs of acquiring IFV," Koudelka said, adding that vehicle maintenance is expected to be carried out in the Czech Republic, which should be completely carried out by Czech companies, including the state-owned company VOP CZ . The memorandum contains an agreement according to which the service contract will be negotiated separately.

The government decided in mid-July to start negotiations on the acquisition of Swedish CV90 vehicles from BAE Systems through an intergovernmental agreement. The Czech Republic started negotiating with Sweden (government agency FMV and vehicle manufacturer BAE Systems) at the beginning of September. Negotiations are held continuously and two dozen meetings have already taken place. In addition, at the end of August, the Czech Republic and Slovakia concluded a declaration according to which they will cooperate in the purchase of the CV90. If the same vehicles are purchased by both the Czech Republic and Slovakia, it would lead to a discount for both countries. Bratislava signed a contract for the supply of 152 CV90 vehicles a few days ago.

The Czech army requires 210 vehicles in seven variants: combat, command, reconnaissance, engineering, rescue, medical and artillery observation versions.

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