Brazilian President Dilma Rousseff is re-evaluating a six billion dollar plan to purchase eleven warships, as part of her plan to slash government spending, the Folha de Sao Pablo reported.
Rousseff is also looking in to the plan her predecessor and mentor Lula da Silva had to buy at least 36 fighter planes, because she is concerned that the expense would use up government funds, when money should be spent elsewhere.
The plan included the purchase of eleven patrol ships, to guard oil reserves off the coast of Brazil, some of which is less than 200 kilometres from the Brazilian coast in the Atlantic Ocean.
Potential supplies of the ships include British BAE, French DCNS and German Thyssenkrupp, said the newspaper.
The report in the Brazilian newspaper comes a week after Reuters said that Rousseff has decided to “begin again” her process of evaluating the multimillion contract for Air Force fighter aircraft, which involved the purchase of at least 36 aircraft.
The news is a harsh blow to French company Dassault Aviation, who up until last week, sources claimed, seemed to have beaten rival Boeing in bidding to supply the aircraft.
In 2009, Brazil and France signed an agreement in which the South American country agreed to purchase submarines and helicopters for over 12 billion dollars.