(RTTNews) -  South Africa Government has decided to terminate contract to buy eight military A400 Airbus transport aircraft due to rising costs, according to the several media reports.

Government spokesperson Themba Maseko reportedly said the termination of the contract was due to extensive cost escalation and the supplier's failure to deliver the aircraft within the stipulated timeframes.
The government announced its intention to purchase the eight planes in December 2004, saying it expected them to cost EUR 837 million, or R6.4 billion at the prevailing exchange rate. But, by the time the contract was signed, the price had surged to R17 billion and subsequent delays in the project resulted in a further escalation reaching a staggering R47 billion.

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by RTT Staff Writer

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