The Trinidad and Tobago government said Wednesday said that the British defence firm, BAE Systems, had agreed to pay TT$1.382 billion to settle a two-year dispute over the cancellation of a contract for three offshore patrol vessels (OPVs).
In April 2007, BAE was awarded the contract to build, integrate, test and commission three OPVs for the local Coast Guard at a cost of TT$1.5 billion.
But the current T&T government, citing persistent delays, opted out of the deal that had been struck by the previous Manning administration.
The vessels were subsequently sold to Brazil.
"We are pleased that the dispute has been settled amicably," said Attorney General Anand Ramlogan in a lengthy 10-page statement.
"The government was prepared to stand up for its rights - the rights of the people - against the one of the largest military defence companies in the world," he said.
BAE Systems said the settlement was "consistent with provisions held". It did not elaborate.
But in his statement, Ramlogan said Trinidad has emerged victorious in the dispute.
"Far from having to pay BAE any money, we have come out of this transaction with TT$1.382 billion. After repayment of the outstanding balance on the loans, there will be a surplus of TT$340.09 million which can go towards the construction of our hospitals and police stations," Ramlogan said.
"We have saved this country a recurrent expenditure of TT$32 million per annum that would have been a yoke around the necks of our children in the years to come."