The additional price for the three new submarines to be built in Germany for Israel and approved by Jerusalem prior to the signing of the submarine construction contract by ThyssenKrupp, is due to the fact that the submarines to be built will be a modern model in accordance with the Israeli order, which was named Decker.
When the Israeli and German governments signed a memorandum of understanding about four years ago to finance the construction of the three new submarines, which were to replace the first three submarines Germany supplied to Israel in the 1990s, the price of the submarines was estimated according to the previous model.
The German government headed by Chancellor Angela Merkel then agreed to fund a third of the total cost of building the submarines, as then estimated at an amount not to exceed 540 million euros.
Since the construction of the new model of the Decker submarines involves higher costs, Israel will bear the cost gap.
The contract for the construction of the three new submarines is expected to be signed in Israel in the next two days.
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