US, Taiwan seal multi-million dollar NASAMS procurement agreement

Taiwan has finalized a NT$24.99 billion (US$761 million) deal with the United States to acquire three Norwegian Advanced Surface-to-Air Missile Systems (NASAMS), aimed at strengthening air defence in northern Taiwan, the Ministry of National Defence announced.

The agreement, signed by the Defence Mission to the US and the American Institute in Taiwan, has a six-year term, running from January 14 to December 31, 2030, Caliber.Az reports via Taiwanese media.

The NASAMS systems are slated for deployment in Taipei’s Songshan District and New Taipei City’s Tamsui District, as confirmed in a statement published on the Government e-Procurement System.

A source familiar with the matter, who requested anonymity, suggested that the first NASAMS could potentially arrive by the end of this year.

In a report issued by the US Defence Security Cooperation Agency (DSCA) on October 25 of the previous year, the US Department of State approved three major arms sales to Taiwan, including the NASAMS, along with L-band AN/TPS-77 and S-band AN/TPS-78 long-range radar systems. These purchases were initially estimated at NT$65.2 billion.

However, the Ministry of National Defence recently revealed that the actual cost of the NASAMS contracts amounted to NT$49.3 billion, significantly lower than the original estimate. The decrease is attributed to factors like fluctuations in raw material costs, production expenses, order volumes, and market competition.

The ministry further stated that contracts for these systems would be signed and the equipment delivered by 2034. Although the ministry’s budget for NASAMS procurement remains classified for the current fiscal year, final expenditure details will be disclosed once the classified budget is made public next year.

In addition to the NASAMS, the procurement also includes 123 AIM-120 advanced medium-range air-to-air missiles, each capable of reaching ranges of up to 50 km. These new systems will complement Taiwan's existing air defence assets, such as the Patriot Advanced Capability-3, Tien Kung (Sky Bow), Lu Chien II (Land Sword II), and AN/TWQ-1 Avenger missile systems.

The integration of NASAMS will enhance Taiwan's operational flexibility, as the systems are compatible with munitions used by F-16 fighter jets, including the AIM-120 and AIM-9X Block II Sidewinder missiles.

By Tamilla Hasanova