Compensation cap blocking Norwegian NH90 deliveries
The long running delays to delivery of Norwegian Navy NH90 NFH helicopters can be explained by the country’s Defense Materiel Agency having already paid out a maximum amount of compensation for delays to manufacturer NHIndustries (NHI), Shephard has learnt.
Under terms of the original procurement contract, NHI were awarded the capped compensation in 2011, but since then ‘there has been insufficient incentives to actually deliver on time,’ according to a spokesperson from the Office of the Auditor General Norway.
The source added that a similar incentive issue previously affected a spare parts agreement, while there remains a problem with a
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