§ Ann ClwydTo ask the Secretary of State for Defence if he will list the offset obligations incurred under the Al Yamamah(a) I and (b) II agreement with Saudi Arabia, (i) as a percentage of the sales agreed and (ii) in absolute terms. [39248]
§ Mr. SpellarThe UK Government, in conjunction with British Aerospace, the Al Yamamah Prime Contractor, agreed to establish and develop a non-contractual Economic Offset Programme to promote commercial ventures between British and Saudi investors. The present target for the non-Saudi investment in ventures taken forward under the Al Yamamah Economic Offset Programme is to generate value of at least £ 1 billion.
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§ Ann ClwydTo ask the Secretary of State for Defence if he will list the value of the offset obligations which have been met to date under the Al Yamamah(a) I and (b) II agreement, the individual offset projects agreed and the value of the offsets credited to each project. [39249]
§ Mr. SpellarThe projects which have been implemented to date under Al Yamamah Offset Programme, and the UK technology partner involved are as follows:
- Glaxo Pharmaceutical Factory
- Tate & Lyle Sugar Refinery
- BP/UOP Cyclar Aromatics Chemical Plants
- BAe Training Company
- Harco Dispersion Products
- Flover Instrument Repair Company.
Offset credits have not yet been negotiated with the Saudi authorities, but the UK estimate of the anticipated total value of the above projects is in the region of £450 million. Work continues to develop and promote further viable projects.