Brazilian Police Buying Drones From IAI

The Brazilian police have decided to increase the number of unmanned aerial vehicle systems they are buying from Israel Aerospace Industries to 14. The deal is expected to be signed by the end of the year, Jose Luiz Boanova Fiho of Brazil's Policia Federal told TheMarker yesterday.

The police have already bought two Heron UAV systems and have put them into operation. The remaining dozen systems are to provided through the end of 2014. Fiho said the IAI is also supplying ground stations and training.

Brazil will host the World Cup in 2014 and the Olympic Games in 2016, and the UAVs will be part of the security for the events.

Defense industry sources estimate the additional UAV purchases will bring the total cost of the deals to $350-400 million. The original deal was to supply two or three UAV systems and was announced last year during the visit of President Shimon Peres to Brazil.

The Brazilians spent two years choosing which UAVs to buy, and chose the Israeli UAVs based on their tried technology, technical capabilities and IAI's willingness for technology transfer, said Fiho. IAI is expected to establish a manufacturing plant in Brazil as part of the technology-sharing agreement in the deal, and will establish a Brazilian subsidiary for the project.