The deal comes as an amendment to the original January 2000 deal, which gave Israel the option to purchase more of the planes.

Lockheed Martin will deliver the same two-seat F-16I configuration as in the previous order, with deliveries expected to start in 2006 and end in 2009.

The funding for the $2 billion contract will come from the US military aid budget, which awards that amount to Israel on an annual basis.

Correspondents say the F-16I is considered one of the most advanced fighter-bombers in the world and has been equipped with advanced fuel tanks that extend its range.

With an aerial arsenal already including an estimated 250 F-16s, Israel has the largest fleet of of the aircraft outside of the US. Egypt has the second-largest foreign F-16 fleet.

"Israel's sixth acquisition of F-16s demonstrates their continued confidence in the F-16I to satisfy their future defence needs," Lockheed Martin president Dain Hancock said.

The first planes from the earlier order are due to be delivered in 2003.

The agreement covers aircraft, logistics support, training, and other services.

The new planes will include a number of systems produced by local Israeli companies, Lockheed Martin said. [BBC - 7 September 01]

[U.S. Army, Europe District - 6 September 2001] : What do Israel's elite paratroops look for when building a new military base? Like Americans, they put quality training and quality of life at the top of their list.

Europe District and the Israeli Ministry of Defense laid the cornerstone for a new U.S.-financed basic training base in the northern Negev Desert in Israel on May 15. Israeli defense officials said the location in the Judean hills is particularly suitable for paratrooper infantry training and state-of-the art support facilities for the Israeli Defense Forces (IDF).

Recruits can look forward to air conditioning and other modern amenities in new barracks, dining halls, and recreation facilities. Their families are happy because it will be safer to visit their loved ones on weekends once their training bases are relocated from the West Bank into Israel.

The $45 million Southern Infantry Training Base is being funded by the U.S. to support the Wye River Memorandum that Israeli and Palestinian leaders signed in 1998 during summit talks hosted by former President Bill Clinton. The U.S. is funding base construction and infrastructure costs so the IDF can move out of the West Bank to free-up land for possible transfer to the Palestinians.

The IDF and the 35th Infantry Training Brigade celebrated the start of construction with a traditional Israeli stone-laying ceremony, where a scroll is buried to commemorate the new beginning.

"What we're doing here lays the cornerstone for a secure Israel, at peace with her neighbors," said U.S. ambassador Martin Indyke, who participated in the Wye River negotiations and came to sign and help bury the scroll. "It's highly symbolic of the United States' iron-clad commitment to Israeli security, and serves as a foundation for reaching a comprehensive peace.

"This is the first of many construction projects brought about by Wye River which will assist with the redeployment of Israeli troops in the West Bank," Indyke added. "It's an important step toward building a spirit of trust with your Palestinian neighbors."

During the next four years the Corps will manage construction of an estimated $280 million in military facilities for Israel. The Corps is soliciting, awarding, and managing the construction contracts.

Near-term construction consists of three new military bases:

The Southern Infantry Training Base, now underway, which was awarded to the Israeli joint venture firm Solel-Boneh and Minrav Holdings Ltd.

The Northern Infantry Training Base, which is scheduled for construction next fall. Proposals are being solicited.

The Nachshonim Storage Base, a $138 million storage and maintenance facility, which will break ground in August. The contract was awarded in June to the U.S./Israel Joint Venture firm of ABB SUSA, A. Arenson, and Baran Group.

Amos Yaron, Israeli Director General of the Minister of Defense, told young soldiers who gathered to see the new site, "It gives me particular personal pleasure to look back on my days in the 35th Infantry and see how well this fits the new needs of this old brigade as we begin a new century."

"Thank you for continuing to stand by us in these difficult days," Yaron told Indyke. "We're working with the U.S. Army Corps of Engineers to build 40,000 square meters of built-up areas to the highest tactical and quality of life standards, standards befitting the responsibilities of such an elite unit. This is a moment in which we celebrate U.S. and Israeli cooperation. That spirit of cooperation is reflected in the partnership of our design and construction engineers."

Wye River implementation offers the Corps another opportunity to assist Israel. The first was more than 20 years ago, after the Camp David Accords were signed and Israel gave up airbases in the Sinai to make peace with Egypt. From spring 1979 to summer 1982 the Corps helped build the Ovda and Ramon Air bases, a $1.6 billion initiative that helped defend Israel and keep the peace into a new millennium.

"The Corps of Engineers is proud to be your partner," said Brig. Gen. Steven Rhoades, North Atlantic Division commander. "A superb team effort brought us this far. Our 35,000 soldiers and civilians from across the U.S. and Europe offer our hopes and prayers that the Corps efforts here will help secure a lasting peace in the Middle East, and a better world for our children."