Cablegate: Defense Ministry Owes Lockheed-Martin Usd 1.2

VZCZCXRO7462
PP RUEHDBU
DE RUEHNT #1735 2780421
ZNR UUUUU ZZH
P 050421Z OCT 07
FM AMEMBASSY TASHKENT
TO RUEHC/SECSTATE WASHDC PRIORITY 8554
INFO RUEHAH/AMEMBASSY ASHGABAT 3318
RUEHTA/AMEMBASSY ASTANA 9514
RUEHEK/AMEMBASSY BISHKEK 3934
RUEHDBU/AMEMBASSY DUSHANBE 3797
RUEHBUL/AMEMBASSY KABUL 1924
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS TASHKENT 001735

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR SCA/CEN

E.O. 12958: N/A
TAGS: ECON EAIR UZ
SUBJECT: DEFENSE MINISTRY OWES LOCKHEED-MARTIN USD 1.2
MILLION

SENSITIVE BUT UNCLASSIFIED -- PLEASE PROTECT ACCORDINGLY.

1. (SBU) In 2005, Lockheed-Martin completed the
modernization of Uzbekistan's Air Defense System and ATC
Automation System at the Khanabad Aerodrome. The value of
Lockheed's contract with the Uzbek Ministry of Defense (MOD)
was USD 12,675,000. To date, Lockheed has received all but
10 percent (approximately USD 1.2 million); this final
payment was due upon final acceptance of the system's
implementation on December 19, 2005. There is no
disagreement on the amount to be paid to Lockheed: MOD's
Finance Department told Lockheed it submitted all necessary
documentation required for payment.

2. (SBU) Department of Commerce Senior Desk Officer for
Caucasus and Central Asia spoke with Lockheed's Amcit
Director of Europe and Eurasia on October 3. The director
confirmed that to date Lockheed has not received the final
payment. He expressed interest in receiving the final
payment, but is skeptical that it will occur in the near
future. Post will continue to monitor the situation and
provide advocacy, as needed. Lockheed told DOC that it does
not believe advocacy or USG intervention adviseable yet, but
wanted to keep us informed.
NORLAND

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