Estonian Centre for Defence Investments
4 October 2023
Estonia signed a contract for the acquisition of military vehicles for the Estonian and Latvian forced structures
The Estonian Centre for Defence Investments (ECDI) has signed a contract with Scania, Veho and Volvo for the acquisition of military vehicles to equip Estonian and Latvian forced structures with various types of vehicles over the next seven years. The total value of the framework agreement is approximately €693 million.
“So far, the Estonian Defence Forces mostly have been equipped with the vehicles that have been previously used by the allies, but due to the heightened security situation in Europe, these resources have been depleted. Now, for the first time ever, we have the opportunity to order new vehicles for the Estonian Defence Forces based on their exact needs,” said Erko Sepri, Strategic Category Manager (Vehicles, Machinery and Logistics) at ECDI.
Sepri explained that this is an ambitious and massive project, with a particular emphasis on details to ensure that Estonia and Latvia have the best possible conditions for the procurement of military wheeled vehicles, both in terms of price and delivery. “The procurement was characterized by fierce competition, with approximately 10 tenderers participating, of whom we declared three as the winners. Veho AS will supply vehicles weighing up to five tonnes and Volvo Estonia AS and Scania Estonia AS were selected as the winners in the category of vehicles weighing more than five tonnes.”
The procured vehicles are divided into two categories: vehicles weighing up to five tonnes and vehicles weighing more than five tonnes. These vehicles include both logistic vehicles designed for road use and tactical vehicles capable of off-road as well as on-road operation. The vehicles are ordered and delivered in partial deliveries, with the first vehicles being delivered next year.
“In the first stage of the procurement, the acquisition of nearly 400 vehicles is planned, which represents a turning point in the modernization of the Estonian Defence forces’ technical park,” said Major Raigo Puusepp, Chief of the Technical and Weapon Systems Department of the Defence Estonian Forces Headquarters. “The introduction of a new generation of vehicles will ensure the sustainability of logistical support for the Defense Forces, eases access to spare parts, and increases the effectiveness and mobility of our units.“
The period of validity of the agreement for military vehicles is seven years, which can be extended by three years when necessary. The signed agreement not only allows for the acquisition of machinery for the Estonian Defence Forces but also for the Estonian Defence League and the Police and Border Guard Board. Vehicles can also be purchased by the authorities in the area of government of the Ministry of Defence of the Republic of Latvia.
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