Year Ender for 2014: A Summary of Updates of Philippine Navy Acquisition Projects

MaxDefense would like to end the year 2014 with a Summary of Updates of Acquisition Projects of the Philippine Navy, which also includes major items for the Philippine Marine Corps. Most of these were previously discussed in older MaxDefense blog entries or in recent postings in the MaxDefense Facebook page. This blog entry may also serve as a guide for future monitoring of the said projects, as this would be easily accessed unlike those in the FB pages.


1. Delivery of 2 Armed AW-109 Naval Helicopters
The last two of a total of five ordered AW-109 Power naval helicopters from AgustaWestland was reportedly delivered to the Philippine Navy on December 29, 2014, and are expected to be commissioned to active duty on January 16, 2015. These two units are expected to complement the two Gregorio del Pilar-class frigates while the three unarmed versions are expected to be land based until more helicopter-capable navy ships become available.

A photo of one of the new AW-109 Power naval helicopters being tested in Italy in October 2014.
Photo copyright owned by Fabrizio Capenti - Malpensa Spotters Group, taken from Airliners.net.

These helicopters differ from the earlier three units for being armed variants, with external loading capability that could enable the helicopter to carry different weapons systems ranging from gun pods, rocket launchers, and although still officially unconfirmed, can also be fitted to carry a torpedo. There were also previous indications that the helicopters are fitted with Electronic Countermeasures (ECM) systems which the earlier three helicopters do not have.

With the PN beginning to fully understand the capabilities of the helicopters, it is expected that further orders might be fulfilled to fully replace the ageing BO-105.


2. Updates on the Strategic Sealift Vessels (aka Landing Platform Dock)
The contract to build two Strategic Sealift Vessels (SSV), which is the project name to acquire Landing Platform Docks for the Philippine Navy, has been awarded to PT PAL of Indonesia and signed mid this year. And according to PT PAL and Philippine Navy press statements, the lead ship will be started within the 1st quarter of 2015 and will be delivered to the Philippine Navy on the 2nd quarter of 2016, while the second ship will be delivered by 2nd quarter of 2017. 

The scale model above is not yet the final design, and MaxDefense confirmed through its PN sources that there are changes in the helicopter deck and hangar design.

According to MaxDefense's PN sources, the final design of the ship has already been confirmed although minor details are still being finalized. It would be a derivative of PT PAL's own Banjarmasin-class LPD for the Indonesian Navy, and will have a mount for a 76mm forward main gun, remote weapons systems in the 20 to 30mm class similar to the Mk.38 Mod.2 being procured for other PN ships, mounts for Man-Portable Air Defense System (MANPADS) in the Mistral-Simbad class, and for 50-caliber heavy machine guns. The weapons will be separately procured by the Philippine Navy and it is still being determined if these weapons can be installed fully or partially by the time the ships are delivered.

MaxDefense is expecting more news of this project within the early part of 2015.



3. Updates on the New Frigate Acquisition Project:
The Philippine Navy recently confirmed that the new frigate acquisition project is still on the move, with all six interested bidders that passed the 1st stage bidding process still up in the running. The pre-bid conference for the 2nd stage bidding is scheduled on January 8, 2015, and bidding will be held probably before the end of February 2015. The PN expects the awarding and contract signing for the frigate contract within the 1st half of 2015 as they are trying to avoid further delaying the project.

Hyundai Heavy Industries offered the HDF-300 multipurpose frigate design, which is where the ROKN's Incheon-class frigate was based.

During the ADAS 2014, HHI confirmed that they are indeed offering a design based on their HDF-3000 multipurpose frigate which the South Korean Incheon-class was derived, while Navantia is offering a design based on their Avante series. Indian and French press releases regarding their participation (Garden Reach and STX France, respectively) in the project indicated their offers will have a displacement of more than 3,000 tons displacement and a length of more than 105 meters. STX France also previously indicated that they are offering a design based on their New Generation Surveillance Frigate.

As the pre-bid conference is scheduled within a few days, MaxDefense is also expecting more news regarding this project very soon.



4. Updates on the Anti-Submarine Helicopter Acquisition Project:
With AgustaWestland named as the only bidder that complied with the requirements of the Anti-Submarine Helicopter Acquisition project's 1st stage bidding, it is expected that the project will be moving on faster as the DND and PN would only need to deal with 1 bidder. Although they have passed through the 1st stage bidding, AgustaWestland still needs to comply to the requirements set for the project.

The chances for an awarding of the contract for 2 Anti-Submarine Helicopters to AgustaWestland is now high as they are the only complying bidder. AgustaWestland is offering its new AW159 Wildcat ASW helicopter.

The PN expects the award and signing of contract for this project to be completed within the 1st half of 2015, and will be paired closely to the PN's frigate acquisition project due to capabilities that require the helicopters and frigates to work closely with each other. 



5. Updates on the Missile-Equipped Multi-Purpose Assault Craft (MPAC):
Re-bidding for this project will be initiated this coming 2015, and there are reportedly some changes in the terms of reference of the project. It is expected that the same bidders as last time will be submitting their interest for this project.

One of the PN's MPACs, delivered as part of the 2nd batch of 3 units acquired a few years ago.
The PN's current requirement is for such to have short-range anti-surface missiles and a remote weapons station.
Photo taken from Interaksyon.com.

It is expected that these MPACs will be physically larger than the two current sub-classes being used by the Philippine Navy, although it would be retaining most of its performance attributes. 



6. Commissioning of 3 Naval Tankers provided by PNOC:
Originally intended to be commissioned this year, the Philippine Navy has rescheduled the entry of 3 tankers, all still unnamed, after some reworks on the ships that will enable them to do replenishment at sea missions in support of the fleet. These are former oil tankers of the Philippine National Oil Company that were given to the Philippine Navy this year.

No exact schedule yet on when these ships will enter naval service.



7. Hand-over of a Pohang-class Corvette and LCU from South Korea:
According to previous reports from Korean media, the Republic of Korea Navy (ROKN) will decommission several ships in their fleet before the end of the year, including the Ulsan-class frigate ROKS Ulsan, a couple of Pohang-class corvettes, and several patrol killer gunboats. Among those is ROKS Gyeongju (PCC-758), which is speculated to be the ship to be handed-over to the Philippine Navy. 

The ROKS Gyeongju (PCC-758), which was reportedly the unit to be provided to the Philippine Navy.

It is expected that the deal for transfer of the ship to the PN will be similar to what the Colombians had when they got some ships from the Korean government this year. Refurbishing will be done in Korea, and will be paid for by the Philippine government, before the ship can be sent to the Philippines for commissioning. There are already preparations being made by the PN for people to be sent to Korea, although information regarding this has been tight lately.

Aside from the Pohang-class corvette, there are also reports that a retired LCU of the Mulgae-class, will also be included, which was discussed previously in a MaxDefense blog entry. No new information though regarding development on this acquisition.

An example of a Mulgae-class LCU from South Korea.

8. Possible Offers of More Korean Excess Defense Articles for the Philippine Navy:
In relation to the availability of excess Pohang and Ulsan class warships, there are strong speculations that the Korean government has been pushing hard for the Philippine Navy and Department of National Defense to choose a Korean shipbuilder to win the new frigate acquisition project, and other Korean defense manufacturers like Samsung Techwin, Samsung Thales, Hyundai Rotem, Doosan, and LIG Nex1 in other defense acquisition projects. 

ROKS Chongju (FF-961), an example of an Ulsan-class frigate from South Korea.

The offer was said to include conditional offers to transfer more Pohang-class corvettes, and probably a couple of Ulsan-class frigates. Although this is not limited to the Koreans, with other bidders reportedly having similar conditional offers as well. According to MaxDefense's PN sources, the Navy is indeed very much interested in acquiring several of the both classes as it also pushes to retire more of its ex-World War 2 assets.



9. Acquisition of 8 Amphibious Assault Vehicles:
The tender for the acquisition of 8 units of AAVs resulted to only Samsung Techwin submitting a bid, with an offer for their AAV7 armored vehicle. These vehicles will be embedded with the SSV that the PN acquired (please see #2 above).

Samsung Techwin's AAV7 is a licensed copy of the original AAV7 / LVTP-7 built by BAE Systems.

Post qualifications have reportedly been completed although there were no confirmation if Samsung Techwin was able to comply with the requirements. It is expected that an award for this project will be made early next year, as the 2-stage bidding process was also cut short with the entry of only 1 bidder. It is expected that the PMC will acquire more AAVs as the PN acquires more SSV and other amphibious naval ships to support Marine operations.



10. Shoulder-Launched Multipurpose Assault Weapon (SMAW) for the Marine Corps:
The Philippine Navy confirmed recently that they have started evaluating the Philippine Marine Corps (PMC) requirement for Shoulder-Launched Multipurpose Assault Weapon (SMAW) to replace the ageing and heavy recoilless rifles still used by the service. 

An old catalog of the SMAW, as marketed by the now defunct McDonnel Douglas Astronautics Company.

As discussed before in MaxDefense, this project has been in the pipeline for more than 2 years now, and it is curious to know why the PN only started the evaluation of this project recently. It is unclear yet if the PMC is interested in the original SMAW weapon used by the US Marines, or is still looking for a different model from other sources. It is interesting to note that the Philippine Army went separate ways on the decision to replace old recoilless rifles, with the Army choosing the RPG-7USA made by American arms company Airtronic.



10. 155mm Towed Howitzers for the Philippine Marine Corps:
Previously reported as a joint Philippine Army-Philippine Marine Corps project, and was reported won by Israeli company Elbit Systems Land and C4I, recent press releases by the Philippine Navy indicated that the project will again undergo a rebidding for still unknown reasons. 

The Elbit Systems Athos 155mm towed howitzer, which was initially selected as a winner for a joint PA-PMC 155mm towed howitzer acquisition project. The PN confirmed recently that a rebidding will take place soon.

If another bidding is to proceed, it is expected that this will happen within the 1st quarter of 2015, although it is still unclear if this will still be a joint acquisition with the Philippine Army. It appears also that the PMC is interested in acquiring support systems for the artillery system, including targeting radar and fire control computer systems.




Aside from those listed above, there are still many other projects under the Philippine Navy that are not discussed anymore, but will be given coverage in future MaxDefense blog entries as more information becomes available for public consumption.



Although 2014 has not been a very good year for the AFP Modernization due to several delays encountered due to questions on the source of funding, especially with the legislative moves questioning the legality of Disbursement Acceleration Program (DAP) and usage of the Malampaya Trust Fund, the AFP and DND were able to use the time to allow most of the projects to move quickly as issues are being cleared by early 2015. 

MaxDefense wishes the Armed Forces of the Philippines, the Department of National Defense, and all MaxDefense blogs and Facebook page readers a very Merry Christmas and a Happy, Prosperous New Year!! Wishing a faster-paced modernization program and additional support and budget from the national government to broader up the program further!

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A Frigate for $200 Million for the Philippine Navy? Why Not!

For all the doubting Thomases following the Armed Forces of the Philippines (AFP) Modernization Program, the question whether the Philippine Navy's budget of Php 18 billion (around $400 million) for 2 brand new frigates is enough has been asked for almost forever since they announced the existence of such acquisition project. With the DND recently announcing that awarding for the project is not possible within this year, it is timely to discuss the issue here @ MaxDefense.

An Incheon-class frigate of the ROKN.
photo taken from Flicker account of the Korean Ministry of Defense.

Before anything else, MaxDefense suggests that readers go through earlier blog entries related to this project, listed as follows:

1. An In-Depth Look at the Philippine Navy Frigate Program of 2013 - an initial analysis made by MaxDefense in the absence of technical specifications, and basing it on the capabilities found on the Maestrale-class frigates.

2. Philippine Navy Frigate Acquisition Project - An Analysis of the 1st-Stage Bidding Specifications - discusses the background of the project, the initial technical specifications released by the PN and DND, and an analysis of what can be expected based on these information.

3. Updates on Philippine Navy's Frigate Acquisition: 6 Bidders Qualified for the 2nd Bid Stage - discussed the pre- and post- bidding results of the 1st stage bidding done on December 2013, and an analysis of what the bidders could be offering.

Further reading and research is also advised, as there are many discussions made with regards to the Philippine Navy Frigate Acquisition Project.

The Kamorta-class large ASW corvette. Garden Reach of India is among those bidding for the PN's frigate project, and MaxDefense believes that they could be offering a variant of this warship.

Corvette vs Frigate: which is which?
There is a very thin veil separating the classification of small warships as either corvettes or frigates, and the Philippine Navy's new frigate may fall somewhere in this category. 

A discussion to explain this issue will actually take up a lot of reading, and MaxDefense would rather refer its readers to an interesting entry regarding the separation of Offshore Patrol Vessels from Corvettes from Frigates:

What is a Corvette? And What Next? - an entry for Center for International Maritime Security (CIMSEC), by Chuck Hill of Chuck Hill's CG Blog.

Based on the link above, it shows that size itself will not be a singular determinant on a ship's classification. It would not really matter much if the ship will actually be considered a large corvette or a light frigate, but will be determined more according to its mission profile. Since it is also up to the PN to determine if the ship is to be considered a corvette or a frigate, then this could probably be considered a light multipurpose frigate that will be tasked to do combat, patrol, and escort missions. Following the PN's own Fleet Desired Force Mix whitepaper, this specific frigate project is actually closer to their requirement for an Anti-Submarine Warfare (ASW) corvette as the requirement for frigates actually emphasizes the mission profile to specialize in Anti-Aircraft Warfare (AAW). 

Per MaxDefense sources, the PN is likely to choose a design with a lot of future-proof capability to accept planned systems which was also indicated in the first stage bidding technical specifications, in a similar way that the British did with their Type 45 destroyers, or the Thais did with their Naresuan-class frigate. Also, the requirement for high sea state capability together with capability to mount more weapons systems plus allowance for future-proofing means that the ship should have sufficient size. It is expected that the ships would definitely be larger than most current corvettes in service with other navies like the Indonesian Diponegoro-class and even the new DSME-designed ships recently announced by the Royal Malaysian Navy.

The closest comparison MaxDefense can make of the PN frigate is that of Indonesia's ongoing PKR Frigate Project based on Damen's SIGMA 10514 design, which was estimated to cost between $220-250 million.

Background of the Frigate Acquisition Project:
The Philippine Navy (PN) originally planned to acquire two used Maestrale-class frigates that the Italian Navy was planning to retire starting late 2013. The budget allocated by the PN and DND was Php 12 billion for the two ships, training of crew and shipyard maintenance teams, refurbishing works, replacement of several electrical, electronic, and mechanical systems, spare parts, and a limited logistics support package. But the Philippines dropped the plan in 2013, which was discussed in a previous MaxDefense blog. Although the PN and DND did not confirm the exact reasons, all those pointed out on the previous blog entry seem to support the decision.



1. The Hyundai Offer:
Apparently, the Koreans, be it the Korean government (or any of its agencies), or Hyundai Heavy Industries (HHI), provided details and solicited offers to the DND and PN to sell a variant of their HDF-3000 frigate design for around Php 18 billion for 2 units. A juicy offer, plus all other negative reasons regarding the Maestrale-class' physical condition and deal details, made the DND and PN decide to go for new frigates by just adding Php 6 billion to its war chest.

The 2nd of class Incheon-class frigate, ROKS Gyeonggi (FFG-812) was built by Hyundai Heavy Industries.

(The Hyundai HDF-3000 frigate is the base design used for the used for the Incheon-class frigate of the Republic of Korea Navy)

Based on this reason alone, it already shows that the Philippine Navy can get an Incheon-class frigate derivative with its budget, even without a bidding. Previous accounts suggest that a standard ROKN Incheon-class frigate cost slightly higher than Php 9 billion each, the Philippine variant can be worth less due to its minimum initial specifications as compared to its Korean variant, an example of which is having only a 76mm rapid firing main gun instead of a larger 127mm gun.


2. Others Answered the Philippine Navy's Call:
To further maximize its budget, the DND decided to go for tender acquisition process instead of going directly with HHI's offer. They used the same budget and technical specifications that was loosely based on the HDF-3000 offer, with hope that there are other shipbuilders and suppliers willing to provide a product within the same parameters as what HHI offered earlier within the allocated budget.  

Based on the description provided on initial technical specifications, it can be categorized either as a corvette or a light frigate, depending on the size of the ship which was not provided. MaxDefense sources confirmed that the PN is giving priority to design allowances for future growth instead of a design that is compact, giving offers whose design exceed the marginal length of 100 meters. Nonetheless, this is not an issue as the ships are design-optimized for maritime patrol, anti-submarine warfare (ASW) and anti-surface warfare (ASuW), with limited anti-aircraft warfare (AAW) defensive capability. To note, the Philippine Navy's Fleet Desired Force Mix strategy whitepaper actually listed 12 anti-submarine corvettes or light frigates in its projected requirement together with 6 more frigates optimized for air defense.

Although Navantia's Avante 2200 Combatant design appear to be smaller than HHI's HDF-3000, as long as it meets the requirements set by the Philippine Navy for its light frigate requirement, then it is acceptable.

With 6 shipbuilders from Korea, Spain, France and India confirming their ability to provide a ship that meets the PN's initial terms of reference and budget, it only proves that what the PN wanted can be had for around $400 million. These shipbuilders are not stupid to enter such tender without knowing the risks of swallowing a contract they can't complete. Thus, not only is the budget capable of getting a HHI frigate, it can also buy the PN a frigate made by any of the shipbuilders that passed the first stage bidding, namely Daewoo Shipbuilding and Marine Engineering, STX Offshore & Shipbuilding, STX France SA, Navantia-Grupo SEPI, and Garden Reach Shipbuilders & Engineers.

Garden Reach's latest product, the Kamorta-class large ASW corvette for the Indian Navy. MaxDefense speculated that they could be offering a variant of this design to the PN's frigate acquisition project.
Photo taken from GRSE website.

3. Separation of Budget to Acquire the Frigate Hull and Weapons Systems:
Another recent adjustments made by the PN and DND was to separate the budget to acquire the frigate hull from that of the weapons systems and ammunition. 

After the presentations made by shipbuilders prior to finalization of the final terms of reference for the 2nd stage bidding, it was found out that they would encounter problems if shipbuilders will be tasked to acquire the weapons systems for frigates. There are unforeseen limitations on this acquisition set-up, and it was acknowledged by the DND that it would be best to have the weapons systems procured separately by the Philippine government, although installation can still be made by the winning shipbuilder or a selected systems integrator. 

No doubt, there were deficiencies on the Technical Working Group (TWG) tasked with this acquisition project, which is attributed to their lack of experience in similar projects before. It should be taken note that this is the first time the PN is acquiring a modern surface combatant in its recent history, and prior to that all major surface combat assets of the PN were handed over by the US Navy and US Coast Guard. But this serves as an important lesson to the country's defense planners, which they could now consider for future similar acquisition projects.


This definitely delays the project, but it does not cancel it as speculated by many people including people with previous military and government background. The changes actually gave the DND and PN a chance to catch-up with all the delays to allow the awarding of the ship hull while the PN still decides and negotiates for the weapons system.

The MBDA MM40 Exocet anti-ship missile are among those being considered to be installed on the upcoming new frigates of the Philippine Navy.

MaxDefense sources indicate that the Philippine government has already made several steps to overcome obstacles in acquiring advanced ship-based weapons systems. The recent signing of the Philippines-France Defense Cooperation Agreement this year is an example of such accomplishments to allow the Philippines to acquire weapons systems from France.



4. The Frigate Acquisition as a Major Priority Project of the Aquino Administration:
Among the major projects championed by President Benigno Aquino III includes this frigate acquisition project. This is evident by the continued announcements made by the president in his State of the Nation Addresses, speeches on major military and security events, and press releases by the government. Canceling this project for any reasons except from opposition from Congress or Senate will definitely have a negative impact on the current administration's ability to provide the Armed Forces of the Philippines the equipment they need to accomplish their mandate. 

MaxDefense believes that the current administration will do all means necessary to push for the awarding and contract signing of this project within the 1st half of 2015 to allow for a major accomplishment (launching or delivery) of the first unit before Pres. Aquino steps down by mid-2016.




So is the PN Frigate Project just another OPV?
There were several opinions made by other analysts and discussions in several websites stating that the Philippine Navy's requirement might be more of an Offshore Patrol Vessel rather than a frigate. But MaxDefense beg to disagree on this. 

In 2011, the US Naval Sea Systems Command released a Request for Information (RFI) regarding the possibility of a Philippine Navy acquisition of at least 2 Offshore Patrol Vessels. The projected specifications had a lot of difference from the PN's current frigate base specifications. The only similarity are the sea state requirement for operation, and the gun systems calibers and numbers. Differences can be seen on the requirements on speed, range, physical dimensions (the PN did not specified the exact dimension requirements for the frigate, but it is expected to be higher than what was requested in the RFI), guided weapons, and other details that were obviously less than those required on the frigate. The RFI actually gave a glimpse of what the PN might be looking for its future OPV requirement, and its dissimilarity from that of the current frigate requirement obviously separates the 2 projects as one and the same.

Also based on the RFI, it appears to be smaller compared to other OPVs in the region like the New Zealand Navy's Protector-class, the Royal Malaysian Navy's Kedah-class, and the Royal Thailand Navy's (RTN) Krabi-class, which was based on BAE Systems' own design with a similar design is used by Brazil as the Amazonas-class. According to multiple open sources, the Thais only spent around $85 million for each of the Krabi-class OPV, complete with its full systems complement. This is less than half of the budget allocated by the Philippine Navy for each of the frigates without weapons systems @ $175 million. The Amazonas-class were originally built by BAE Systems as the Port of Spain-class for Trinidad and Tobago Coast Guard, and each of the ships costed them £50 million ($81.5 million) each in 2009. Even if you consider inflation and price adjustments due to time, it is still far less than the frigate budget. 

The Krabi-class OPV of the Royal Thai Navy.

Another point of comparison is the recently chosen OPV for the Philippine Coast Guard (PCG) to be built by French shipbuilder OCEA, which will cost around $113 million together with 4 smaller 24-meter patrol boats. It is expected that the OPV-270 design will only be less than $75 million.

Based on the aspects of costs and previous specifications for OPV requirements, it is acceptable to say that the current frigate acquisition project is not for an OPV, but for a surface combatant, either a large corvette or a light frigate, but will also be capable of doing patrol and EEZ protection duties. 



...But Other Frigate Projects Exceed $200 million apiece!
There are comparisons made during discussions to other frigate projects worldwide using the budget allocated by the DND and PN for the frigate acquisition. And it appears that the PN's budget of $200 million for a single frigate is too low.

Previous studies were made wherein they concluded that increasing the hull size was a cheap option, thus increasing the hull size to frigates size will not significantly increase the cost. But the bigger the hull, the heavier the ship is, and if the PN wanted a ship with speed to match its size, then a higher output engine aside from the usual cruising diesel engines is needed. This is where MaxDefense believes the ship's cost will escalate.Further price escalations will be coming from the electronics, mechanical, electrical, and sensors/detection system to be installed in the ship. Although the base specs indicated a minimum 2D search radar, MaxDefense believes that the PN would be getting at least a 3D air-surface search radar which is the current standard nowadays.

Without the weapons, $175 million would not give the PN much wiggle room, but would definitely be enough to build a frigate without its weapons systems. But it would depend on who will supply the ship as building it in Europe or other advanced countries may escalate the price due to production costs. This would have a negative impact for Navantia and STX France which are planning to build the ships in Europe. This could change if they are willing to build the ships on their partner shipyards in Asia.

What actually concerns MaxDefense is the $25 million allocated for the weapons systems and ammunition. But the separation of the weapons systems from the frigates may actually give a new hope that the PN could actually provide more to arm the ships properly. Being a separate project, the DND and PN has the option to improve the budget allocation without affecting the schedule of the frigate construction. If the PN cannot allocate enough budget to fully arm the ships upon its commissioning, then it would be capped in the meantime to limited roles although the allowances in its design will allow future growth should the budget allows.




Latest News Confirmed Earlier Analysis:
The latest press release made by the DND c/o USec. Fernando Manalo is a relieving news, a sign that the DND and PN has not abandoned the project after awarding has been delayed for several months now. It also confirmed that they are indeed using a revised terms of reference (which includes a technical specification molded by the inputs of all the shortlisted shipbuilders) which will give to rest to the speculation that the frigate will be nothing more but a OPV with bells and whistles. 

With a new target of 2015, which collaborates with all other MaxDefense sources from both DND and PN, it is still possible to actually have a major accomplishment made by mid 2016. There are certain bidders that can actually complete an entire frigate from the ceremonial steel cutting until launching in less than a year, and delivery period can be also be a consideration on choosing the winning bidder.

So let us be more patient in awaiting for a positive outcome of this acquisition project. If this proves to be successful, succeeding major ship acquisition projects would definitely be easier and take shorter to complete next time.



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UPDATES:
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April 20, 2015:
For archive purposes, MaxDefense has decided to update the frigate project with the last information released to the public.

Hyundai Heavy Industries (HHI):
During the ADAS 2014 Exhibition, HHI executives confirmed to IHS Jane's that they were offering a variant of their HDF-3000 frigate design to the Philippine Navy. This is the design used by the Republic of Korea Navy for their Incheon-class frigate. According to HHI, the design will integrate specific requirements of the Philippine Navy, including the weapons and sensor systems they intend to install according to the mission profile intended. 

Garden Reach Shipbuilders & Engineers (GRSE):
IHS Jane's confirmed that GRSE was indeed offering a variant of their Kamorta-class ASW corvette to the Philippine Navy. Further information revealed that they were offering the ship with the Tacticos combat management system from Thales, and that they have already teamed-up with a local shipyard to provide the long-term logistics and maintenance support should the contract be awarded to GRSE. 

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Philippine Coast Guard - Focusing on the Modernization of its Naval and Air Assets

The Philippine Coast Guard (PCG) previously announced their upcoming modernization program that will improve their capabilities, which includes the acquisition of new assets and equipment including new aircraft, patrol vessels and small boats, construction light houses, installation of coastal surveillance and communications systems, acquisition of rescue equipment, and others. The most recent acquisition plan include patrol vessels from France, wherein there were 2 separate acquisition plans that were brought up last year.

The 54-meter San Juan-class search and rescue vessels are currently the most capable ships in the Philippine Coast Guard. Built by Tenix of Australia, there are 4 ships in service with the PCG since 2000.

Among those in the pipeline are one 80-meter Offshore Patrol Vessel (OPV) and four 24-meter Inshore Patrol Boats from France, ten 40-meter Multi-Role Response Vessels (MRRV) from Japan, at least 2 large patrol vessels, as well as new helicopters and aircraft. MaxDefense will be focusing on the major materiel acquisition done or being undertaken by the Philippine Coast Guard as part of its modernization effort. 



La Audacieuse-class (P400) Offshore Patrol Vessel:
MaxDefense previously discussed the planned acquisition of a former French Navy La Audacieuse-class (P400) offshore patrol vessel, the ex-La Tapageuse, in another blog entry. Originally planned for acquisition directly from the French government, the deal was not pursued by the Philippine government after the acquisition policies of the government took the PCG too long to confirm the acquisition, and the French government was not in a position to wait for the PCG as well. It was instead sold to French shipbuilder Piriou, which in turn refurbished and sold it to the Gabonese government as part of a larger deal that involves the sale of a brand new 58-meter OPV made jointly by Piriou and DCNS.

The La Tapageuse is now bound for the Gabonese Navy, although there are more La Audacieuse-class ships still available with the French Navy that are expected to be retired soon.

As previously announced by the Philippines' Department of Transportation and Communication (DOTC), which is the parent ministry of the PCG, the estimated total cost to acquire and refurbish the ex-La Tapageuse was about €6.3 million. This is actually cheap considering that after the refurbishment works, it is expected that the ship can still serve the PCG for 15 years or more. With the La Tapageuse gone, it doesn't mean the end for PCG's quest for a La Audacieuse-class ship as the French Navy is scheduled to retire more of the class from service as they are replaced by newer ships. If the PCG could overcome the delays in approving the acquisition of pre-owned patrol vessels, they could have a chance of getting one, if not several of the ships of the class in the near future.


OCEA OPV 270 83-meter Offshore Patrol Vessel & FPB 72 24-meter Patrol Boats:
Another vessel acquisition program of the PCG that was recently in the limelight was the purchase of brand new French ships, using the budget previously allocated by former President Gloria Arroyo's administration to construct several Ro-Ro ports as part of its "Strong Republic Nautical Highway" project funded mostly by French government loans. With current President Benigno Aquino III overturning the project due to belief of anomalies made by the previous administration, the budget was then used to acquire new patrol vessels and boats for the PCG instead. 

While the decision to divert the loan funds was made early in the Aquino administration, it was only on November 2014 that announcements were publicly made by OCEA confirming that they would be supplying the 80-meter OPV to the PCG as part of a €90 million contract. Being a French-funded loan, it is only right that French shipbuilders be given the chance to supply the boats. OCEA confirmed during the Euronaval 2014 that the PCG will acquire a single 80-meter Offshore Patrol Vessel based on their new OPV 270 design. Although they did not made any announcement in Euronaval 2014, OCEA previously confirmed the acqusition of four 24-meter Patrol Boats based on their proven FPB 72 design by the PCG at Euronaval 2012 event.

According to NavyRecognition, the OPV 270 patrol vessel's hull is made from marine aluminum, with a length of 83 meters, a maximum range of around 4,500 to 8,000 kilometers at 15 knots, an endurance of 30 to 45 days, and a maximum speed of around 26 knots. It has a crew of 44 men, can take from 3 to 6 VIP passengers and 20 passengers. It will be powered by twin diesel engines. From the photos provided in open sources, the ship also has a helicopter deck capable of accepting light to medium-sized helicopters like the Airbus Helicopters Dauphin. This would probably take the role of the PCG's flagship once it enters service until a larger, more capable vessel becomes available.

OCEA's OPV 270 was selected to fulfill a requirement of the PCG for an 80-meter Offshore Patrol Vessel.
Photo taken from OCEA c/o NavyRecognition website.

From its description, it appears to be similar to a US Coast Guard medium-sized cutter of the Famous/Bear-class, although with a shorter range but with less men and probably lighter displacement. This is due to the aluminum material for use to build the ship, which is far lighter than marine steel. But this also means that the ship is prone to collision damage, and may not be used by the PCG on high seas showdown with the China Coast Guard or any other civilian maritime agencies in the region which involves a lot of rough cheek to cheek bumping. Aluminum-made hulls do not have the same structural strength as steel-made hulls, and it would be advisable for the PCG for this ship to avoid such incidents. 

The FPB 72 inshore patrol boat from OCEA.
Photo taken from metermarine.com. 

The FPB 72 inshore patrol boats are smaller boats, also made using aluminum material which is OCEA's specialty. It has a length of 24 meters, and a maximum speed of around 32 knots. Based on its appearance alone, it would probably be used only on waters closer to land and would probably have almost the same characteristics as the Philippine Navy's Jose Andrada-class patrol gunboats which are also at 24 meters long. Aside from the PCG, the FPB 72 was selected by the navies of Suriname and Nigeria for inshore patrol duties.

Since this acquisition came from diverted funds, it would be doubtful if the PCG would order additional units, except if France will continue to provide financial assistance for similar programs in the near future. 



Multi-Role Response Vessels (MRRV) from Japan
A major acquisition project for the PCG also includes the Multi-Role Response Vessels (MRRV), in which the PCG will acquire 10 units to be assigned to its coast guard districts. An ongoing project, it is currently in the bidding stage as required by the Japanese government which provided the funding as part of the Maritime Safety Capability Improvement project of the PCG. The project is worth JPY 18.732 billion (around $187 million).

Currently the bidding was moved from October 30, 2014 to November 14, 2014 due to a number of queries that needs to be cleared from the respective bidders. All bidders are qualified Japanese companies as required by the loan agreement between the Philippine and Japanese governments. As of August 2014, shortlisted candidates for the project to supply 10 MMRV are Japan Marine United Corporation, Mitsubishi Heavy Industries Ltd., Niigata Shipbuilding and Repair, Inc., and Sumidagawa Shipyard Co. Inc., all of which have experience in building small to large patrol vessels for the Japan Coast Guard. It is expected that the first vessel will be delivered to the PCG by December 2015, if all goes well according to the DOTC & PCG's plans. Aside from the shipbuilders, the PCG also acquired the services of a Construction Supervision Consultant to assist the PCG in project management works.

There are speculations that the specifications are very close to the Japan Coast Guard's very own Bizan-class 180-ton patrol vessels, although there are no final confirmations yet on the design.
Photo taken from Vessel & Ships Photo Gallery website.

According to the Technical Specifications made available by the DOTC, the ships will have the following details:

- are expected to be at least 40 meters long, but not more than 45 meters long;
- maximum speed of at least 25 knots at 110% maximum continuous output of main engine at half loading condition without sea margin;
- with a range of not less than 1,500 miles at 15 knots;
- an endurance of 7 days;
- will have a complement of 5 officers and 20 crew;
- capable of transporting 15 passengers in addition to the ship complement;
- hull will be deep V-chine mono hull type, made of full welded high tensile steel and aluminum alloy;
- able to withstand flooding of any two contiguous compartments;
- powered by two V-type, 4-cycle high speed marine diesel engines, maximum output of not less than 2,000kW at 110% MCO, with twin fixed pitch aluminum bronze propellers;
- will have a deck crane and a 5-meter RHIB work boat;
- RHIB work boat will have a speed of around 30 knots at 2 persons loading, with portable GPS, spare fuel tank and repair kit;
- the ship will have an external firefighting system, consists of one 2,600 liters/minute water monitor with 50-meter range and remotely operated, and two 1,000 liters/minute water monitor with 30-meter range, and one independent fire extinguishing pump;
- to have day and night surveillance camera, CCD camera / thermal imager with 2-axis stabilizer;
- a VHF radio direction finder;
- a remote-stabilized 2KW Xenon searchlight;
- 200 kHz 600W echosounder;
- an X-band navigation radar and Satcom system;
- a requirement for special spare parts are included.

There were suspicions that the design might be close or derived from the Japan Coast Guard's very own 40-meter patrol vessel of the Bizan-class, but it is still unclear if shipbuilders will be using a current design from the JCG, or they are free to provide a design based on their own interpretation of the technical specifications. 



Large Offshore Patrol Vessels
There are still plans by the PCG to acquire larger offshore patrol vessels, expected to be more than 90 meters in length, and will be larger than any of the current and future ships in its inventory. 

There were previous reports that the PCG was in talks with the Japanese government to acquire two new 90 to 100-meter high endurance vessels, although no further confirmation was made to this. The latest on this was even revealed by the PCG Commandant during ADAS 2014. These were previously requested some years ago but was shelved due to lack of budget, but was being brought back in as the government support to improve the PCG's capabilities might be able to fund these acquisitions.

During the 4th Annual OPV Asia Pacific Conference held last March 2014, the PCG presented its requirements for large patrol vessels in the 80 to 125-meter category. 

Among the requirements brought out by the PCG for their large OPV include the following:
- capable of sustaining speeds of at least 15 knots (full load) and 20 knots (light load);
- accommodate not less than 57 officers and crew (7 officers and 50 crew), and at least 35 passengers (1 VIP, 2 medical officers and 32 survivors);
- can cover a range of not less than 4,500 nautical miles at designed cruising speed;
- capable of operating up to Sea State 5, and could hurdle up to Sea State 6;
- capable of conducting continuous maritime patrol for a period of 10 to 15 days based on its designed patrol speed of 15 knots;
- an overall length between 80 to 125 meters, and breadth of not less than 14 meters;
- powered by two medium-speed marine diesel engines;
- can support helicopter operations and have helicopter deck;
- can carry two high speed RHIB with capacity for 10 people;
- with decompression chamber.

A good example of a coast guard patrol vessel that fits the PCG's technical specifications is the Je-Min-class 1500-ton patrol vessel of the Korean Coast Guard. Although an older model, shipbuilders can always provide new designs that suite the PCG's requirements.
Photo taken from Hyundai Heavy Industries website.

No confirmation was made whether the above specifications apply for the recently signed contract to acquire an OCEA OPV 270, but with the specifications above it appears that it was for a larger vessel, which might be what the PCG earlier requested. Currently, the Japan Coast Guard's large patrol vessels have less breadth than required by the PCG, although it is possible for Japanese shipbuilders to create a specific design derived from existing JCG patrol vessels. Another good example are those from Korea like the Je-Min-class large patrol vessels built by several Korean shipbuilders like Hyundai and Hanjin. This alternative is good considering that Hanjin has a major shipbuilding facility in Subic that can be used instead of building one abroad.

Aside from these requests for new large patrol vessels, there were previous reports that the PCG also tried to acquire old JCG patrol vessels that are scheduled for decommissioning, among them are said to be a couple of Shiretoko-class patrol vessels. But sources indicate that the JCG was planning to extend the lives of these ships in light of the territorial disputes with China and increased government and public moral and financial support to strengthen the JCG.

There were previous attempts to acquire Shiretoko-class ships from the JCG, but did not materialize after the JCG decided to extend the service lives of these large but ageing ships.

Minor Inshore/Coastal Boats Acquisitions:
There were also requirements for 300 units of aluminum-hulled rescue boats, 81 units of rigid-hulled inflatable boats (RHIB), 90 rubber boats, and 6 personal water crafts (jet-ski). These are minor assets that are expected for use for inshore, coastal, and riverine duties; for humanitarian assistance and disaster response (HADR), and search and rescue (SAR). The acquisition, all under the DOTC's Procurement of PCG Disaster Response & Rescue Equipment, were separated into several lots, although MaxDefense will only cover the watercrafts involved:
Lot 1 - 50 units of Rubber Boats
Lot 2 - 300 units of Aluminum V-shaped Boats with Outboard Motor
Lot 3 - 81 units of Rigid-Hulled Inflatable Boats and 6 units of Personal Watercraft 

This project was later on divided into 3 parts, with the original program continuing as the first part, and covered the watercraft requirements under Lot 2. The second part, which was later renamed as the Php294M Philippine Coast Guard Rescue Equipment project, covered the Lot 1 acquisition. The third part was named as the Php521M Philippine Coast Guard Rescue Equipment project, covers the Lot 3 acquisition. MaxDefense discusses these projects based on how the DOTC & PCG divided the projects, and are as follows:

a. Procurement of PCG Disaster Response & Rescue Equipment:
Originally, this project should cover all the entire watercraft and rescue equipment acquisition of the PCG, but was later on sub-divided due to the need to award the different requirements to different bidders, and the timeline was also considered. Only the Lot 2, or the acquisition of 300 units of aluminum V-shaped boats with outboard motor (OBM) was successfully undertaken in this program.

The PCG selected Propmech's Rescue 550 aluminum v-hulled boat for its requirements. 300 units were procured.
Photo taken from Propmech's official website.

The DOTC provided the technical specifications for the aluminum V-shaped boats, and the summary are as follows:

- Category C in boat design, v-shaped hull and aluminum welded construction;
- a length of between 5 to 6 meters, width between 1.8 to 2.5 meters;
- hull minimum thickness of 3mm, and draft with maximum payload depend on boat design;
- capacity of 10 men, or a maximum payload between 1,200 to 1,500 kilograms;
- with 2,500cd search light, all around navigation light;
- to include 2 paddles and a galvanized trailer with water tight axle;
- powered by 4-stroke EFI fuel injection engine outboard motor, with output of 40hp

The project was awarded on December 2012 to Propmech Corporation under a contract worth Php 202.980 million. Honda Philippines Inc. supplied the 4-stroke outboard motors to Propmech Corp. 

One of the aluminum boats being tested with its Honda 4-stroke engine already installed.
Photo taken from the Manila Bulletin website.

b. Php295M Philippine Coast Guard Rescue Equipment:
A second bidding attempt was made for the remaining unawarded items, which includes the rubber boats, RHIB, and jetskis, but after the project was completed, only the rubber boats and other non-watercraft items were awarded. 40 other rubber boats were already procured earlier, and this specific acquisition fulfilled the total requirement for 90 units.

The DOTC allocated Php 43.5 million for the acquisition of 50 rubber boats, and they released the technical specifications for the rubber boats required with the summary are as follows:

- should be brand new with 5 years warranty and service support;
- the buoyancy tube fabric material should be 1,600 to 2,500 decitex;
- should be colored with International Orange/Red;
- with Quick fit aluminum floor board;
- capacity to carry 9 to 10 men;
- an inside length of between 3.2 to 3.4 meters, an inside width of between 0.8 to 1.0 meter;
- weight carrying capacity of 1,100 to 1,300 kilograms;
- powered by brand new outboard motor with 40hp output.

The bid was won by Propmech Corporation on December 2013, with a contract amount of Php 33.749 million. Zodiac Marine, a well know manufacturer of  high quality utility and sports rubber boats, was chosen by Propmech Corporation, and the first batches were delivered to the PCG immediately. 

Some of the rubber boats supplied by Propmech Corporation, which were manufactured by international brand Zodiac Marine. One of the newly acquired aluminum boats is also in the background.
Photo taken from Dumaguetenews website.

c. Php521M Philippine Coast Guard Rescue Equipment:
The third phase includes the acquisition of the RHIB and the Jet-skis. This is still an ongoing project, and has not yet been award to any bidder as of this blog's writing. The DOTC has released the technical specifications for the RHIB requirements, and the summary are as follows:

- brand new units with 5 years warranty and after sales service;
- suitable for patrol and interception tasks, transportation of crew and equipment, rescue operations, and diving support;
- with a length of between 6 to 7 meters, an overall beam of around 2.3 to 2.6 meters, a draught between 0.50 to 1 meter;
- designed speed of 30 knots with 6-man seating capacity
- a seating capacity of 6 persons and a maximum capacity of 10 persons;
- weight without engine & equipment between 640 to 700 kilograms;
- powered by two outboard motors, output at 90HP, 4-stroke EFI engine;
- Deep V hull configuration, with hull thickness of 5mm, made of fiber reinforced plastic hull for rigid hull construction;
- with two fuel tanks with capacity of 150 liters each;

The Willard Marine Sea Force 670 (above) is at almost the same category as those being specified by the PCG for its RHIB requirements. 

The Personal Water Craft (Jet-ski) specifications are as follows:

- an overall length between 2.5 to 3.5 meters;
- a top speed of 30 to 40 knots;
- sitting capacity for 2 people.

2-seat Jetskis used by the US Coast Guard in a training exercise. Similar crafts are required by the PCG.
Photo taken from Wikimedia.

The Coast Guard Districts that are scheduled to receive the RHIBs and Jet-skis are listed in the Terms of Reference provided on the link.

Following the specifications above, a comparable product example is Willard Marine's Sea Force 670 series, or the larger Sea Force 730 series, as based on the provided specifications of the product. The Philippine Navy and other civilian armed services are long time users of Willard Marine RHIB products, and it is not impossible for their products to be included in the tender. 



Multi-purpose Helicopters:
The PCG also bared plans to acquire several helicopters to beef up its air assets, which are mostly comprised of old MBB Bo-105 helicopters and BN-2 Islander light aircraft. Previous plans by the PCG a few years ago point at acquiring helicopters from then Eurocopter (now Airbus Helicopters), specifically the EC145 which were to be acquired using German government Official Development Assistance (ODA) funds. 

But recent PCG announcements, like those made by the PCG Commandant within this year points to the acquisition of 7 helicopters from Bell Helicopter Textron, specifically the Bell 412EP. So far no orders have been made, and acquisition of new air assets to complement the Bo-105s in PCG service has already been too delayed. MaxDefense believes that choosing the Bell 412EP is actually a better choice, with the same helicopter model chosen by the Philippine Air Force as its new Combat Utility Helicopters to complement and replace the ageing Bell UH-1H Huey, it is expected that support and maintenance for these birds will be available in the country in the long term.

Bell 412 helicopters of the Turkish Coast Guard.
Photo owned by Kerem Bektas.

Looking Forward...
The Philippine Coast Guard is on the way to expand and modernize its current assets, the force is also increasing their manpower, improving the knowledge and skills of the entire force, enhancing their cooperation with regional and global coast guard organizations, and improving their materiel to increase their detection, interdiction, search and rescue, HADR and law enforcement capabilities. Overall, more needs to be done by the Philippine government, in providing the necessary financial and legal support for the PCG, and allowing them to be a force strong enough to assist in the many security, emergency, and natural calamity challenges the country faces.

MaxDefense also suggests that the Philippine government make use of the PCG to assert its maritime interests and policies, now that most of its neighbors are engaged in a "white versus white" game in areas with conflicting interests like the West Philippine Sea. The PCG has been left behind in almost every aspects by its neighbors like China, Taiwan, Vietnam and Malaysia, and this would be detrimental to the country's national policies. 

The PCG should be the one enforcing the maritime claims and enforcement of Philippine laws in its Exclusive Economic Zone, and must be ready to encounter China Coast Guard ships similar to the photo above.

It's not too late though. Being a civilian agency, it would be easier to fill out the budgetary issues of the PCG due to its access to loans, grants, and other sources that the Philippine Navy would surely envy. The Philippine government, under a strong and supportive DOTC, could actually expand this modernization effort as part of its overall strategy of enforcing its maritime policies in cooperation with the Philippines' Departments of Foreign Affairs (DFA), National Defense (DND), Interior and Local Government (DILG), Energy (DOE), and Agriculture (DA).




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UPDATES:
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April 20, 2015:
The Department of Transportation and Communication has awarded the contract to construct and deliver ten (10) 40-meter Multirole Response Vessels (MRRV) for the Philippine Coast Guard to the Japan Marine United Corporation (JMUC). They submitted the lowest calculated bid of ¥12.79 billion (Php 4.8 billion), which includes "standard spare parts and tools, crew training, ocean transport, and marine insurance". They were up against the bids from other Japanese countries, which are the Mitsubishi Heavy Industries Ltd., Niigata Shipbuilding & Repair Inc., and Sumidagawa Shipyard Co. Ltd.

The ships are expected to have a cruising speed of 16 knots, and a range of 1,500 nmi. No indication yet if the range given is the maximum range, and what the maximum speed is. 

Since the project cost is less than the committed loan the Japanese government will provide, it is still unclear if the loan will cover the entire cost of the project, or if the Philippine government will shoulder part of the costs as originally planned.

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