The contract was inked by Israeli and German officials at the Defense Ministry in Tel Aviv. The total sum of the deal is €430 million, a third of which will be provided by a special German government grant of €115 million.
TK Consortium, the owner of the TKMS shipyard, is committed to a reciprocal purchase of 700 million shekels (€162.3 million) worth of the Israeli defense market, according to the ministry.
The vessels will be built in the German city of Kiel, near Hamburg, where Dolphin submarines which are currently operating in the Israeli Navy were produced.
The ships are planned to arrive in Israel in the coming five years. They will be equipped with Israeli-made combat systems enabling the country’s defense companies to receive new orders.
The corvettes will secure Israel's Exclusive Economic Zone in the Mediterranean. They will be used in conjunction with other vessels, including naval unmanned surface vehicles, intelligence drones and other weaponry and military equipment.
He also said that energy sites located dozens and hundreds of kilometers off the coast in the sea will receive proper protection as a result of the deal.
On Monday, German Defense Minister Ursula von der Leyen came to Israel on an official visit. Her Israeli counterpart Moshe Ya’alon on Sunday underscored the importance of security cooperation between Israel and Germany.
Earlier, Israel ordered three new-generation air independent propulsion Dolphin class submarines from Germany, in addition to the three ageing Dolphins in service.
The Israeli Navy Ship (INS) Tanin arrived in Haifa’s naval base in September, and was equipped with Israeli-produced weapons and communication systems. The fifth, the INS Rahav is expected to arrive in the coming months.
