More than NIS 15 billion is the amount that Israel would have to spend in the coming years to defend against the ballistic missiles that Iran launched in military exercises yesterday. Sources believe that Iran intended for the missile tests to highlight the Ayatollah's long-range capabilities.
Most of the money for the Arrow missiles would come from the defense budget, which the Ministry of Finance wants to cut in line with the Trajtenberg Committee recommendations for social justice. The money would be needed to procure the powerful radar systems that would spot incoming missiles, for the interceptor missiles, which cost several millions apiece, and to train the personnel to man the systems' command and control rooms.
The defense establishment is not facing an isolated threat, but a range of challenges, each of which requires a specialized defense system to be deployed. The Arrow missile is the response to ballistic missiles (owned by Iran and Syria); the Magic Wand intercepts short and medium-range missiles fired from Lebanon or Syria; and Iron Dome, which has already demonstrated operational success in the last round between Israel and Hamas, is the response to Katyusha and other rockets.
$2.7 million per Arrow
A senior IDF officer told "Globes" that NIS 15 billion would not provide total protection. "NIS 15 billion is the amount we reached to provide only a reasonable response to the rocket and missile threat in the arena between Iran and Gaza. All of this is on top of the next multiyear defense budget."
The multiyear defense budget, known as Halamish, is for the IDF's procurement and training program over the next five years - 2013-18. This year, 2012, defined as the year of preparation, as the IDF's previous multiyear defense budget, called Tefen, ended in 2011.
"We'll need several thousand interceptor missiles for the Iron Dome," said the officer. "Each missile costs $80,000. We'll need hundreds of interceptor missiles for the Magic Wand system, and each missile costs $70,000. An Arrow 2 missile costs $2.7 million, and the price for the future Arrow 3 will be slightly lower - $2.2 million. We'll several score or hundreds of Arrows to deal with the barrage of incoming missiles during a confrontation."
He added, "Each of these missiles works with radar systems, launch batteries, soldiers who press the buttons, and a complete logistics network. The IDF also pays for the Iron Dome batteries' deployment that will provide constant defense of Kiryat Gat against kassam rockets."
The money has run out
It is clear to everyone that the matter does not end there. The IDF says that the huge amount will only suffice for the fourth and newest leg of Israel's defense concept. The three current legs - deterrence, warning, and decision - on to which will be added additional restrictions reflecting how many billions will go to defense, just when the budget is being cut. At the same time, the Trophy and other tank missile defense systems, as well as something to protect the natural gas rigs in the Mediterranean will also have to be paid for.
One top IDF officer estimates the cost of defending the natural gas rigs at several billion shekels over the next five years. "It greatly depends on what we decide to do there, and most of all, with which tools to do it with. It's already clear that we'll have to intensively patrol these spaces, increase the forces and procure more platforms, because the present deployment is minimal and insufficient to carry out the mission satisfactorily."
The defense establishment used the Tefen multiyear plan to the last penny, and IDF chiefs are proud that nearly all the goals were met, at least as far as procurements are concerned. In the years ahead, the Air Force will have stealth fighters and the infantry will be carried in the new Leopard APCs alongside the new Merkava Mark 4 tanks , scores of which - equipped with the Trophy defense system - came off the production line at Tel Hashomer.
The Israel Navy has been neglected, procuring two Saar 5.5 missile corvettes in the Tefen multiyear plan. The IDF wants to buy more Saars in the next multiyear plan.
"The money simply ran out," says the officer. "Each cost NIS 1.5 billion. We thought to produce them at Israel Shipyards to lower the cost, but it didn’t help. These platforms are expensive - but we need them."
Until there is money for the new corvettes, the defense establishment is planning its first test of the Arrow 3, made by Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1).
Published by Globes [online], Israel business news - www.globes-online.com - on January 3, 2012
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