LONDON, July 10 (Reuters) - Germany may not finishnegotiations with Europe's MBDA and Lockheed Martin Corp on the MEADS missile defence system by the end of the year asplanned, according to a document sent to lawmakers by a seniorGerman defence ministry official.
The document, dated July 8 and sent by State Secretary RalfBrauksiepe, said it was unclear if the project could besubmitted to the parliamentary budget committee by the end ofthis year, or if it would slip into early next year. A copy ofthe document was seen by Reuters.
Company officials told Reuters last month they hoped tosubmit a final contract proposal for the Medium Extended AirDefense System (MEADS) by the end of July and wrap upnegotiations on the $4.5 billion project by year's end.
Lockheed officials were not immediately available to commenton the ministry document.
Experts say it may be difficult to win parliamentaryapproval if negotiations drag on too long too close to Germany'snational elections in September 2017.
Tobias Lindner, a member of the Green party, said the delay made him question if the ministry had fully understood therisks involved in the project.
Germany announced last year it had chosen the MEADS systemover Raytheon Co's Patriot system to replace the currentPatriot system fielded in the 1980s, but said the companies hadto meet demanding performance milestones to retain the contract.
Germany funded a quarter of the $4 billion invested by it,the United States and Italy to develop the new system as asuccessor for the Patriot system. The U.S. military, citingfinancial pressures, decided several years ago not to buy thesystem, while Italy has not yet announced its plans.
European missile maker MBDA is jointly owned by Airbus Group, Britain's BAE Systems Plc and Italy'sLeonardo Finmeccanica SpA.
Raytheon, a candidate to build a separate radar system thatwould be integrated with the MEADS system, says it is staying inclose touch with the German government in case the MEADSconsortium fails to meet the milestones set by the government. (Reporting by Andrea Shalal and Sabine Siebold; Editing by PaulSimao)