The German budget committee approved a pre-contract to buy?MEKO A200 class frigates on Wednesday. According to two members of the committee, TKMS will pay?50 millions euros ($59.70million) for these frigates.

The budget committee approved an alternative strategy for 7.8?billion euro last year after a delay of years in the original planned purchase of F-126 frigates.

The funds released on Wednesday are to be used for financing so-called delivery hedging instruments. These are meant to?ensure the delivery of the first ship before December 2029.

According to sources familiar with the project, at least three MEKO frigates will be involved. Each MEKO frigate would cost approximately 1 billion Euros and is less expensive than an F-126.

The MEKO A-200 weighs less than the F-126 (approximately '10,000 tons) and is limited in some areas, such as its ability to embark helicopters.

The navy, however, considers the limitations to be acceptable, due to the time restrictions imposed by the Russian threat. ($1 = 0.88375 euros) (Reporting and Writing by Markus Wacket; Editing by Madeline Chambers).

(source: Reuters)