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GIAT HOPES TO DELIVER FINAL TANKS TO UAE

LONDON [MENL] -- A state-owned French contractor plans to complete a 10-year tank project in the United Arab Emirates marred by disputes that included a lengthy suspension in delivery.

The UAE contract is expected to end in 2004 when the last of 436 Leclerc tanks and recovery vehicles are delivered to Abu Dhabi. Industry sources said Giat lost nearly $1.5 billion on the UAE project.

Abu Dhabi is expected to obtain an additional batch of Leclerc tanks over the next few weeks. Giat said it supplied 381 out of 388 main battle tanks. Only 12 of the 46 recovery vehicles have been delivered.

"The delay is because the UAE has asked for modifications on those vehicles to suit its requirements and we have agreed to do such modifications," Norbert Chevasson, a sales executive at Giat Industries, said. "Modifications will also be carried out on the main tanks."

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