ROME — A temporary agreement has been reached between Italy, Japan, and the United Kingdom to extend their collaborative work on the GCAP fighter jet initiative for an additional three months. This extension allows the UK additional time to secure further funding for the project.

The collaborative program office, established by the trio of countries, announced on Thursday that a new £686 million ($906 million) contract for development has been awarded to Edgewing. This consortium, formed by leading defense companies BAE Systems, Leonardo, and Japan Aircraft Industrial Enhancement Co. Ltd. (JAIEC), is tasked with developing the sixth-generation jet fighter.

“This substantial £686 million contract is directed towards crucial design and engineering efforts, propelling the tri-nation partnership to escalate the project’s pace and delivery momentum,” stated the GCAP agency managed by the three governments.

This initial contract with Edgewing comes at a time of increasing concerns about potential delays stemming from uncertainties in the UK’s Defense Investment Plan, which was expected to allocate funds specifically for the GCAP program.

The Defense Investment Plan, which was supposed to be finalized last year, is still pending publication. This delay occurs amidst a general reduction in public expenditure and a reported shortfall of £28 billion in the UK’s defense budget.

This financial gap has cast a shadow over programs like GCAP, especially after the initial contract with Edgewing was scheduled to be concluded last year. Japanese officials have expressed concerns that these complications might push the project’s completion beyond the planned 2035 date.

A program insider informed Defense News that the new contract serves as a “bridge” to maintain project continuity until the end of June. By then, the UK is expected to finalize its spending plan, allowing a larger, subsequent contract to be negotiated.

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“The contract signed today is an international effort, with the UK playing a significant role. It’s structured to ensure the project remains on track,” the source mentioned.

In anticipation of the Defense Investment Plan’s completion, the UK recently awarded Leonardo a £1 billion contract for the manufacture of 23 AW149 helicopters. This contract aims to prevent the shutdown of Leonardo’s manufacturing facility in Yeovil, UK.

A spokesperson for Edgewing commented on the deal, stating, “With this international contract now in place, Edgewing is fully empowered to lead the program industrially. Our focus is on ensuring that engineering efforts meet the scheduled milestones and that the business scales up as projected.”

For the first time, Italy, the UK, and Japan have consolidated their funding into a single contract with Edgewing. The spokesperson highlighted, “This marks a historic first where the technical design and development responsibilities for a combat aircraft program are entirely entrusted to a newly established international prime contractor. We are committed to fulfilling these responsibilities diligently.”

Masami Oka, the Chief Executive of the GCAP Agency, emphasized, “This contract signifies a pivotal moment for GCAP, as activities previously managed under separate contracts by the three nations will now be unified under this comprehensive international program.”