Sao Paulo, Nov 28 (EFE) President Luiz Inacio Lula da Silva has authorised spending six billion reais ($3.43 billion) to finance construction of 2,285 amphibious armoured vehicles for the Brazilian army, officials said.
Defence Minister Nelson Jobim said the new vehicle, the Guarani, will be built by Brazil in partnership with Italy’s Fiat-Iveco.

“It will replace the army’s entire mobility system,” he said in comments published by Folha de Sao Paulo newspaper Friday.

The army has until now relied on the Urutu and Cascavel, built by the now-defunct Engesa company and exported to a score of countries.

The prototype of the Guarani was presented at the Laad 2009 defence hardware trade fair in Rio de Janeiro with a cost per unit of $1.5 million.

Brazil recently signed deals with France for helicopters and submarines and is in the market for 26 fighter jets, while Brazilian officers travelled to Russia to discuss purchasing an air-defence system.