Cape Town Arms suppliers obliged to deliver investments and exports totalling $14bn over 11 years in terms of the arms deal commitments are on track and have even exceeded their interim targets.

Their achievements so far fly in the face of pessimists and opponents of the R53bn arms deal, who were convinced that the arms suppliers would fail to fulfil their obligations under the national industrial and defence participation agreements.

Trade and industry deputy director-general Bahle Sibisi said this week that 33 projects had been approved to date and were forecast to generate export and investments to the value of more than $6bn over an 11year period. The 2003-04 milestone is $4bn in investments and exports actually achieved.

The planning, construction and installation phases of 22 projects (66%) were completed this month, while a further six projects would commence operations by June.

So far the national industrial and defence participation projects had resulted in the creation and retention of about 5050 jobs.

"Our third six-monthly review conducted in November 2001 indicated that all of the obligors are on track to fulfil their contractual obligations," Sibisi said when briefing a joint sitting of Parliament's trade and industry committee and the National Council of Provinces' select committee on economic affairs. "The next two years should see a significant increase in exports as plants reach full capacity and the next phase of projects are launched. The finalisation of additional projects in the aluminium, automotive and tourism sectors are also at an advanced stage," he said.

Agusta had already achieved its first export milestone almost 18 months ahead of schedule, he said, while British Aerospace was close to 50% of its 2004 investment target of $300m.

The other major company with obligations, Ferrostaal, had finalised the engineering and feasibility studies for projects that would be located at Coega.

Sibisi noted that Agusta had generated investments and exports of $320m, Thyssen $1,3bn, Thales $307m, Ferrostaal 1,7bn and BAE/SAAB $2,4bn.

With acknowledgements to Linda Ensor and Business Day.