Your 1st for Philippine Defense

Austal leads Philippine Navy's OPV Acquisition Project!

SecDef Lorenzana confirms Austal is still the preferred OPV supplier for the PN

The Philippine Navy commissions its 2nd Jose Rizal-class frigate!

The Philippine Navy welcomes BRP Antonio Luna (FF-151), its newest frigate!

The Philippine Navy selects Shaldag Mk. V for Fast Attack Interdiction Craft!

The DND has awarded the FAIC-M Acquisition Project to Israel Shipyards

The Philippine Air Force wants more Black Hawk helicopters!

The Philippine Air Force asks for more Black Hawks to allow the retirement of their Bell UH-1 Huey fleet

The Philippine Army orders the Sabrah Light Tank System from Israel!

Israel's Elbit Systems was declared the winner to supply light tanks to the PA

The Philippine Air Force receives full order of Hermes 900 and Hermes 450 UAVs!

All 9 Hermes 900 and 4 Hermes 450 MALE UAVs have been received by the PAF!


Showing posts with label LRPA. Show all posts
Showing posts with label LRPA. Show all posts

Saturday, November 10, 2018

Indonesia's Increasing Participation in the Philippine Military's Modernization Program

As the Armed Forces of the Philippines (AFP) continues to modernize its forces under the banner of the Revised AFP Modernization Program (RAFPMP) mandated by Republic Act 10349 (RA 10349), the Department of National Defense (DND) continues to search for reliable source of military equipment and munitions that would not only be of high quality, but also reasonably priced.

While Western-made equipment, particularly those sourced from European, American and Australian manufacturers and suppliers are generally accepted to be of high quality, they are also normally higher priced, and sometimes beyond the reach of the budget allocated by the National Government for the RAFPMP. Meanwhile, Russian and Chinese sourced equipment tend to be cheaper, but quality, compatibility, commonality and interoperability are all affected due to their different mindset in manufacturing (priority on quantity and reduced cost rather than quality), as well as their being on the different side of the geopolitical spectrum means it would be difficult for the AFP to integrate most of their equipment especially those using higher technology like fighter aircraft, naval systems, sensors, and missile systems.


A compromise would be going for other sources that are using NATO or Western standards, but are not necessarily Western countries. These countries include South Korea, India, Eastern European countries like Czech Republic, Bulgaria and Serbia, and others. Among those "others" is Indonesia, which is experiencing a boom of defense industry development in the past 10 years due to their government prioritizing improvement of their defense capabilities, support of local manufacturing capability to support defense, and the hunger for technology transfer agreements from suppliers.

Aside from fulfilling their local market, these Indonesian defense companies are now looking outward at exporting their wares to countries who usually either buy Western or Russian/Chinese, but prefer to take a look at alternatives in the global market. The Philippines is among those who showed early interest in Indonesian-made defense products, as shown by the active participation of several Indonesian companies in public bidding or negotiated procurement projects of the AFP and DND.

In this blog, MaxDefense will be discussing the RAFPMP projects where the Indonesians have been participating actively, and what are the status of their offers in respect to the modernization project's status. The information on Indonesian companies and products was connected with the recent high activity in the Indonesian defense sector due to the ongoing IndoDefence 2018 defense exhibition in Jakarta, Indonesia earlier this week. This could be noticed by the steady stream of defense news related to Indonesia lately as major defense publications like IHS Jane's, Shephard Media, and other big names were covering the event.

Indonesia is still on the game with regards to the Philippine Air Force's long delayed Long Range Patrol Aircraft (LRPA) acquisition project (top), and in the new requirement for Strategic Sealift Vessels (SSV) (above).
Photo taken from PTDI's website, and Detic.com.




DND & AFP @ IndoDefence 2018:

The Philippines has a strong delegation that attended the IndoDefence 2018 Exhibition and Forum in Jakarta, Indonesia, which is ongoing from 7th to 10th November 2018. All branch of services of the AFP, as well as the AFP General Headquarters and DND were well represented, which allowed them to cover their respective requirements.

While part of the DND-AFP contingent was to talk to different defence manufacturers from all participating countries, there is also a strong reason to bring discussions with Indonesian companies that supply Indonesian-made products.




Indonesian Products in the AFP:

So far, Indonesia has been successful in supplying products to the Philippines, with at least two major projects won and undertaken by Indonesian companies after winning public tenders made by the DND.


Among them are the Philippine Navy's Strategic Sealift Vessel (SSV) acquisition project, which was awarded to state-owned shipbuilder PT PAL in 2014 resulting to the delivery of the Tarlac-class landing platform docks, and the Philippine Air Force's Light Lift Fixed Wing Aircraft acquisition project, which was awarded to PT Dirgantara Indonesia (PTDI, aka Indonesian Aerospace) and supplying the CASA-PTDI NC212i Aviocar light tactical transport aircraft. 

Both projects were undertaken by previous administrations, with the PAF LLFWA acquisition actually part of the 3rd phase of the old AFP Modernization Program under RA 7898, and the PN SSV acquisition project under the Horizon 1 phase of the RAFPMP.

There were several attempts made by Indonesian companies in winning projects under the old AFPMP and the RAFPMP Horizon 1 phases. Among them were the PTDI's participation in the PAF's Medium Lift Fixed Wing Aircraft acquisition project which was ultimately won by Airbus Military, and PTDI's participation in the Anti Submarine Helicopter acquisition project of the Philippine Navy, which was ultimately won by Leonardo Helicopters.



Best examples of Indonesian products already in service with the Armed Forces of the Philippines include the Tarlac-class landing platform docks made by PT PAL (top), and the NC-212i light tactical airlifters made by PT Dirgantara Indonesia (above). So far both are non-kinetic assets and are mostly support assets.
Photo credits ot the Philippine Navy and detik.com.



Upcoming Modernization Projects of the AFP:

There are still several acquisition projects in the RAFPMP, mostly under the current Horizon 2 phase, as well as future projects in the Horizon 3 phase which will be implemented starting 2023.

Currently there are several projects in which Indonesian companies are expected to participate. Some of these projects actually have a high chance of being awarded to an Indonesian company.

1. Philippine Army:

a. Light Tank:


The Philippine Army is in the market to acquire 2 types of Light Tank platforms with a total quantity of 44 units: with one based on a tracked armoured vehicle platform, and a second one based on an 8x8 wheeled armoured vehicle. Both will be armed with a 105mm tank gun.

Indonesia is currently in the running for the tracked Light Tank platform with the FNSS-PT Pindad Kaplan MT (aka Harimau Hitam) medium tank. This is a joint development of Turkish company FNSS and Indonesia's PT Pindad, wherein FNSS is providing support to PT Pindad to meet requirements of the Indonesian Army to supply up to 300 medium tanks to replace their ageing AMX-13 and Scorpion light tanks. The tank is said to be designed as a real medium tank rather than an Infantry Fighting Vehicle armed with a tank turret. 


While PT Pindad is not participating on the Wheeled Light Tank requirement, its partner FNSS will by participating with their 8x8 Pars.

According to MaxDefense sources, the Philippine Army is scheduled to have a demonstration of the tank sometime between 19th to 22nd of November 2018 in Indonesia. MaxDefense looks forward to get details on the said demonstration.

The FNSS-PT Pindad Kaplan MT / Harimau Hitam medium tank.
Credits to original source of photo.





b. Wheeled APC:

The Philippine Army is also looking at proposals for to supply 28 Wheeled Armoured Personnel Carriers armed with a manned turret with a 25mm autocannon. Among those who were reported to have submitted a proposal was PT Pindad, although it is still unclear what are the complete details of their offer, which is said to be revolving around the Anoa 2 6x6 armored vehicle, considering the vehicle was never been installed with such gun and turret before. MaxDefense believes that PT Pindad may have offered an alternative using a RCWS system with a 12.7mm machine gun.


PT Pindad's Anoa 2 6x6 armored vehicle.
Credits to original source.




c. Light Tactical Vehicle:

This is another project that PT Pindad made known its interest to the Philippine Army by proposing its Komodo 4x4 tactical vehicle line. The project is currently not among those considered as urgent, so details on this as well as PT Pindad's offer is still not solid enough for discussion.


The PT PAL Komodo was offered to the Philippine Army and Philippine Marines for their Light Tactical Vehicle requirements, although it remains to be seen if the vehicles are within the technical specifications of both service branches.
Credits to original source of the photo.




2. Philippine Navy:

a. Strategic Sealift Vessel:

The Philippine Navy is again in the market to acquire two additional Strategic Sealift Vessels (SSV) similar or better than the Tarlac-class landing platform docks it acquired from Indonesia's PT PAL. As expected, PT PAL is again in the frontline in this project, making use of its previous win and close coordination with the Philippine Navy. The current budget for the two SSVs is Php5 billion, which is 20% more than the budget allocated for the first batch of SSV in 2013.


Based on media reports as well as information passed on to MaxDefense, PT PAL is offering a longer variant at 143 meters long (compared to the 123 meters on the Tarlac-class). Based on interviews made on PT PAL's public affairs officer present in IndoDefense 2018, they are confident to bag the contract, which they expect to cost around US$43 million per ship (Php2.3 billion on current exchange rate), or within the allocated budget of Php2.5 billion per ship by the Philippine Navy.

The new variant is not only larger, but also faster with a top sustained speed of 20 knots (compared to 16 knots on the Tarlac-class), which means the extra length could be to accommodate larger, more powerful diesel engines, or additional diesel engines in a CODAD configuration.

PT PAL is competing with Dutch shipbuilder Damen Schelde Naval Shipbuilding (DSNS) and South Korea's Daesun Shipbuilding.


PT PAL's proposed SSV for Horizon 2 is 20 meters longer, faster, and may have more storage or carrying capacity than the Tarlac-class that is based on a 123 meter design from PT PAL (above).
Photos credited to Benedict Exconde, shared during ADAS 2018.




b. Offshore Patrol Vessel:

Another major project, and is actually the most expensive project of Philippine Navy's Horizon 2 project, the acquisition of 6 Offshore Patrol Vessels is among the most contested project, and PT PAL is present to provide its own solution.


Last month, MaxDefense mentioned in an earlier blog that PT PAL was said to have offered their 85 meter Offshore Patrol Vessel design to meet the PN's requirements. Although there already appears to be some favoured shipbuilders by the DND, PT PAL's offer remains on the table should the DND and Philippine Navy consider competition aside from those favoured by both offices.

PT PAL submitted their 85-meter long Offshore Patrol Vessel design to the Philippine Navy to meet the OPV Acquisition Project requirements. It remains to be seen if PT PAL will be shortlisted, considering this project is given higher priority by the DND and PN for immediate implementation.
Photo credited to Benedict Exconde, taken during ADAS 2018.




3. Philippine Air Force:

a. Long Range Patrol Aircraft:

The Long Range Patrol Aircraft (LRPA) is among the most delayed project in the RAFPMP, first implemented by the PAF in 2014 and is among the first projects forwarded for implementation. Several bid failures later, its still in the acquisition list.

Previously MaxDefense wrote in its last blog entry that Spain's CASA might be at an advantage on the LRPA project based on the recent plans to allow Government-to-Government acquisitions between the Philippines and Spain.


But it appears now that the Technical Working Group is still finalizing the revised specifications of the project. Apparently, PT Dirgantara Indonesia (PTDI) is pushing forward its CN-235-220MPA offer. Originally the CN-235-220MPA did not met the original technical specifications of the LRPA project which calls for a larger aircraft with more space and consoles, and capability to do both Maritime Patrol Aircraft with Anti-Surface Warfare (ASuW) and Anti-Submarine Warfare (ASW). 


PTDI is said to be capable of producing a ASW-capable MPA similar to the Turkish Navy's MELTEM II CN-235ASW but using the CN-235-220 platform manufactured by PTDI.
Photo from turkishnavy.net



But with technological improvements, PTDI is said to be capable of combining both requirements in a single system, with their new variant called the CN-235-220ASW. PTDI's advantage is on pricing, which they are confident to be far cheaper than any of their competitors, while also adding their willingness to provide technology transfer as part of the deal.

It remains to be seen though if the PAF's LRPA TWG would indeed change the specifications especially on aircraft dimensions and weights, or will stick to the old one, which would not be beneficial to PTDI due to it being more favorable to the CASA-Airbus' C-295ASW.

PTDI confirmed that they are now capable of combining MPA and ASW capabilities due to technological advancements in the past few years. It all remains to the PAF's TWG if they insist on using a larger aircraft like the C-295M.
Photo taken from PTDI's website.




b. Medium Lift Aircraft:

The PAF plans to acquire three more Medium Lift Aircraft to supplement the three Airbus Military-CASA C-295M medium tactical airlifters acquired a few years ago, and to replace the remaining Fokker F-27 Friendship aircraft in service.

Despite PTDI's offer using the CN-235-220 aircraft which is cheaper but smaller and shorter than the CASA-Airbus C-295M/W, it appears that PTDI is willing to provide extra including technology transfer, and willingness to assist the DND to revive the capacity of the Philippine Aerospace Development Corporation (PADC, which is now under DND control) to allow local servicing of the existing NC-212i fleet, as well as the future CN-235-220 and even the CASA-Airbus C-295M fleet.

Should the DND and PAF decide to go on a G2G or negotiated bid for this project, such offer by PTDI can be considered unlike if the project goes under a public bidding like before.


MaxDefense was also told that PTDI was actually offering more if the PAF and DND consider acquiring the CN-235-220 airlifter and maritime patrol aircraft all together, which MaxDefense believes may have to do with the PAF's interest to acquire additional NC-212i light tactical airlifters. 

The CASA-PTDI CN-235-220 medium tactical airlifter, this specific aircraft said to be for Senegal.
Photo taken from Tempo.co.




c. Combat Utility Helicopter:

PTDI actually has a license to build the Bell 412EP, although it appears that they still do not have the capacity to build the newer Bell 412EPI that the Philippine Air Force is originally after for their Combat Utility Helicopter acquisition project.


According to MaxDefense sources, PTDI did made a pitch to supply license copies of the Bell 412EP, similar to those already in service with the PAF, although they are giving way to current moves by Bell's parent company in the US to sell the Bell 412EPI through their own line.

Nonetheless, PTDI is said to be always ready to produce the Bell 412EP if the PAF decides to go for it instead of the current offers it got from the US government and Bell USA.

PTDI is a licensed manufacturer of the Bell 412EP, and is willing to produce them for the PAF if Bell USA cannot secure a deal that is being ironed out between them and the DND with the assistance of the US government.
Credits to owner of the photo.




The Possibilities are Wide Open:

These projects are just some of several possible projects that the Indonesian defense companies are interested in joining in, there are several projects wherein MaxDefense has not been able to gather enough information, but we are certain that the Indonesians are hoping to participate in.

Among them are minor products like ammunition, small arms, infantry equipment, machinery, and spare parts for military equipment.

Then there's the offers to provide technology transfer to the Philippines, as well as in assisting the Philippnes own aircraft and naval shipyard capabilities which are actually interesting proposals that go beyond acquisitions but are still within the bounds of the AFP's Modernization Program.



Many of the projects we listed above are for immediate implementation, including the Offshore Patrol Vessel, Combat Utility Helicopter, and Long Range Patrol Aircraft, so hopefully we'll see the outcome of Indonesia's and everyone's participation in these projects.

Whatever the outcome, MaxDefense hopes that cooperation in defense manufacturing and trade continues between the Philippines and Indonesia, and strengthen further considering both countries are among the closest neighbours in terms of people, government, culture and defense. Indonesia as the de facto leader of ASEAN and the largest economy and country in Southeast Asia can be a good role model on how the Philippines can move forward to defense self sufficiency, technological advancement, and other achievements that could help the Philippines and the Filipino people in the long run.



Summary:

1. Light Tank acquisition project

End User: Philippine Army (Mechanized Infantry Division)
Modernization Phase: Horizon 2 phase
ABC: Php9,484,332,000.00 (combined 2 lots)
Quantity: 44 units (lots 1 & 2 combined)
SARO Release: to be updated
Winning Proponent: None yet, still in procurement phase
Contract Price: N/A


2. Wheeled APC acquisition project

End User: Philippine Army (Mechanized Infantry Division)
Modernization Phase: Horizon 2 phase
ABC: Php2,265,200,000.00
Quanitity: 28 units
SARO Release: to be updated
Winning Proponent: None yet, still in procurement phase
Contract Price: N/A


3. Light Tactical Vehicle acquisition project

End User: Philippine Army (multiple units)
Modernization Phase: Horizon 2 phase
ABC: Php4,000,000,000.00
Quanitity: 200 units
SARO Release: to be updated
Winning Proponent: None yet, still in procurement phase
Contract Price: N/A


4. Strategic Sealift Vessel acquisition project

End User: Philippine Navy (Sealift & Amphibious Force)
Modernization Phase: Horizon 2 phase
ABC: Php5,000,000,000.00
Quanitity: 2 units
SARO Release: to be updated
Winning Proponent: None yet, still in procurement phase
Contract Price: N/A


5. Offshore Patrol Vessel acquisition project

End User: Philippine Navy (Offshore Combat Force)
Modernization Phase: Horizon 2 phase
ABC: Php30,000,000,000.00
Quanitity: 6 units
SARO Release: to be updated
Winning Proponent: None yet, still in procurement phase
Contract Price: N/A


6. Long Range Patrol Aircraft acquisition project

End User: Philippine Air Force (300th Air Intelligence & Security Wing)
Modernization Phase: Horizon 1 phase
ABC: Php5,976,000,000.00 (subject to possible changes)
Quanitity: 2 units
SARO Release: returned, to be updated
Winning Proponent: None yet, still in procurement phase
Contract Price: N/A


7. Medium Lift Aircraft acquisition project

End User: Philippine Air Force (220th Airlift Wing)
Modernization Phase: Horizon 2 phase
ABC: Php5,288,609,984.00
Quanitity: 3 units
SARO Release: to be updated
Winning Proponent: None yet, still in procurement phase
Contract Price: N/A


8. Combat Utility Helicopter acquisition project

End User: Philippine Air Force (205th Tactical Helicopter Wing)
Modernization Phase: Horizon 2 phase
ABC: Php12,100,000,000.00
Quanitity: 16 units (subject to change depending on model procured)
SARO Release: SARO-BMB-D-17-0025076 released on 21 December 2017
Winning Proponent: None yet, still in procurement phase
Contract Price: N/A

Saturday, November 3, 2018

PAF's LRPA Project Expected to Benefit with Improvement of PH-Spain Defense Cooperation

The Philippines' Department of National Defense (DND) recently confirmed that they are closer to having a closer defence cooperation agreement with Spain, which is a Memorandum of Understanding (MOU) on Logistics, Defence Materiel, Armaments, and Defence Industry Cooperation which would allow the DND to acquire to have Government-to-Government (G2G) acquisitions and transactions with its Spanish counterpart.

This is in relation to the ongoing Revised AFP Modernization Program (RAFPMP) which is currently in its Horizon 2 phase covering 2018 to 2022. Most of the projects in this phase has not yet been awarded or implemented so there is still a lot of projects that would be up for grabs.

Among those being considered by Spanish defense companies include the supply of mortars, assault weapons, small arms and artillery ammunition, warships and patrol boats, support ships, radar systems, sensors, air dropped munitions, armoured vehicles and support vehicles, infantry equipment, transport aircraft, and many more.


But it appears that the focus is more on the Philippine Air Force's own acquisitions, particularly the Long Range Patrol Aircraft (LRPA) project, which is among the most delayed project in the RAFPMP.

MaxDefense believes that among the foremost reasons on the Philippines' decision to go G2G with Spain is to finally realize the Long Range Patrol AIrcraft (LRPA) acquisition project, which apparently CASA-Airbus Military is the preferred supplier. The C295 aircraft is made by EADS-CASA in Spain, while the sensors and subsystems are from Airbus in France.
Credits to original source of photo.


Background:

The Long Range Patrol Aircraft (LRPA) acquisition project was intended for the Philippine Air Force to acquire it's first two (2) maritime patrol aircraft (MPA) that would be used for maritime surveillance, anti-ship and anti-submarine warfare (ASuW & ASW), intelligence gathering, and command & control (C2). The aircraft are to be able to fly further than the fringes of the country's Exclusive Economic Zone (EEZ), can be armed, and will be the primary surveillance asset of the PAF and Armed Forces of the Philippines in general. The allocated budget (ABC) for the project was Php5,976,000,000.00.

The project is actually part of the Horizon 1 phase of the RAFPMP, and was among the first projects that was implemented by the PAF due to the expected long acquisition period. It was decided by DND and PAF Senior Leaders back then that the acquisition will be via Two-Stage Public Bidding, with the procurement process starting as early as 1st quarter of 2014. It was expected that the winning bidder would be able to deliver both aircraft within 34 months after the release of Notice to Proceed (NTP), or opening of Letter of Credit (LOC).

In the first bidding attempt, none of the participating companies were able to pass the 1st first stage of the bidding. 


Another attempt was made in 2016, and only Airbus Military was able to pass the first stage and be eligible to proceed to the second stage in a couple of months. But after several negotiations in between and conducting the second stage bidding, Airbus Military also failed. 

MaxDefense found out that, due to the poor performance of the Philippine pesos against the US dollar and the Euro, the peso value of the ABC wasn't sufficient enough to allow Airbus Military to deliver two fully compliant MPAs, and allow them provide enough profit or margin. Instead, Airbus proposed to deliver 1 fully compliant aircraft, and 1 incomplete aircraft with the same bid amount they provided in the 1st stage bidding. But based on the government's procurement rules under RA 9184, this is unacceptable, thus Airbus' submitted bid was considered non-compliant, and they were declared disqualified.

With no other bidder in the project, the LRPA Acquisition project was considered a failed bid as of 2017, after more than a year of process.


A third attempt again happened in 2017 but was also considered another failed bidding, after none of the bidders passed the initial requirements under the first stage bidding.

With the failed biddings, the DND is now allowed by law to proceed to a Limited Sourced Negotiated Procurement, which means it can now go directly to several of its shortlisted suppliers/manufacturers and get their best offer. This means the DND can now go directly and negotiate with Airbus Defense & Space, which appears to be the PAF's preferred supplier for the LRPA with their Airbus-CASA C-295MPA Persuader, similar to those sold to the Chilean Navy.

Further reading is adviced, through our previous blog entries on the LRPA's technical specs:

"PAF'S Long Range Patrol Aircraft - Tech Specs, Post-Bidding Report and Updated Analysis" - first posted 29 May 2015.


LRPA Negotiated Procurement:

According to MaxDefense's earlier blog entries since 2014, despite the PAF's preference for refurbished Lockheed Martin P-3C Orion maritime patrol aircraft from either US, Japan or Australia, the PAF is bent on getting new aircraft as well.

The failed biddings in the past means the DND can now go directly and negotiate with Airbus Military as allowed by law. And according to MaxDefense sources from the DND, PAF, and the international defense market community, it appears that the PAF's TWG as well as the PAF leadership are all in agreement that they prefer to deal with Airbus Military to acquire their Airbus-CASA C-295MPA Persuader, similar to those sold to the Chilean Navy. This despite strong offers made by several companies and countries for their products.


The Airbus C-295ASW Persuader of the Chilean Navy, which has an anti-submarine capability including the presence of magnetic anomaly detector (MAD) and munitions firing capability for anti-submarine torpedoes or anti-ship missiles. The PAF LRPA requirement also calls for these capabilities.
Photo taken from Airliners.net.


Since this won't be a bidding anymore, the deal won't be purely commercial anymore, and may now include political influence due to its G2G nature. It means that despite the PAF's budget being too low for 2 fully functional C-295ASW Persuaders,  the G2G process allows the DND to make use of other ways to fulfil the deficit. Either by agreements in other matters that will allow the DND get the Spanish government's support, or for the DND to pay the rest of the amount later on as part of an agreement supported by its Spanish counterpart.

In short, a G2G deal with Spain allows the DND and PAF to finally realize the LRPA deal without the hassles of public bidding and long budget requests delaying the project.

Among the delays in the LRPA was attributed to the PAF's insistence of sticking to the specs rather than reducing the aircraft's capability to meet the budget. It was actually a good decision by PAF since they know how difficult it is for them to request for additional funding to fill-up systems that were fitted for but not with the aircraft.
Credits to original source of photo. 

VVIP/Command and Control Turboprop Aircraft Project:

Another project that will benefit from a G2G deal is the Philippine Air Force's VVIP / Command and Control Turboprop Aircraft acquisition project, which is part of the Horizon 2 phase of the RAFPMP. It aims to acquire a new turboprop powered aircraft that will act as one of the the Philippine president's service aircraft while travelling locally, and can also be used as a Command and Control platform, as it would be installed with C3 systems that would allow it to become the president's base of operation during emergencies. It would be one of the aircraft intended to replace the Fokker F.27 Fellowship propeller VVIP aircraft, and Fokker F.28 Fellowship VVIP jet aircraft still in service with the PAF's 250th Presidential Airlift Wing.

The PAF allocated an ABC worth Php1,800,000,000.00 for this aircraft, which MaxDefense believes to be an aircraft that is similar to something already in service. And it turns out our assumption was right.


The VVIP Fixed Wing Aircraft Turobprop aka VVIP / Command and Control Turboprop Aircraft, was among those planned for acquisition within the Horizon 2 phase of RAFPMP with an ABC of Php1.8 billion.
Photo taken from official defense documents.

Apparently another C-295 was ordered from EADS-CASA (Airbus) to fulfil the VVIP  C2 Turboprop Aircraft of the PAF.
Credits to original source of the photo.

According to sources, the Philippine Air Force picked on Airbus-CASA's C-295 medium turboprop aircraft for the project, and the DND was reported to have awarded it only last 16 October 2018.

Medium Lift Aircraft Acquisition Project:

Another Horizon 2 project that may benefit from the planned defense agreement improvement between the Philippines and Spain is the Philippine Air Force's Medium Lift Aircraft acquisition project, wherein the PAF plans to acquire 3 more medium airlifters to boost its current fleet of three (3) EADS-CASA Airbus C-295M medium tactical airlifters. The plan is for these aircraft to replace the two remaining Fokker F.27 Fellowship aircraft in service with the 220th Airlift Wing.


The ABC for this project is Php5,288,609,984.00 for three (3) aircraft.

Since the PAF is already using the Airbus C-295M, it is only logical and practical for the PAF to order another batch of either the C-295M, or the newer C-295W with winglets which is said to have improved performance and fuel economy over the winglet-less C-295M.


MaxDefense expects a contract for additonal C-295s to be only made by 2019 at the earliest, considering the cash flow of the RAFPMP funds are already allocated for several projects approved for implementation this and next year.

The EADS-CASA C-295W medium tactical transport aircraft, with the winglets upgrade compared to the original C-295M that the PAF already has.
Photo taken from Airbus website.


Other Potential Projects:

MaxDefense still cannot discount the strength of Spanish shipbuilder Navantia, which could still be interested in offering their products for the upcoming Corvette and Offshore Patrol Vessel acquisition projects of the Philippine Navy. Although they were absent in this year's ADAS 2018 defense expo in Manila, they still have presence in the region and is monitoring the acquisition plans of the Philippine Navy.


Navantia is still around the corner despite their loss on the Frigate Acquisition Project 3 years ago. They could still be interested in the Corvette Acquisition Project.
Photo taken from Navantia's website.

Another potential project that the Spanish are interested in participating are the Philippine Marines' acquisition of Mortars, specifically 60mm, 81mm, and 120mm, as well as a similar project with the Philippine Army although limited to 60mm and 81m only. NTGS' Alakran 120mm mobile mortar, as well as EXPAL's 81mm EIMOS and its line of 81mm and 60mm mortars are said to be among those being offered for the Marines' requirements

Separately, it was reported that a Spanish company approached Filipino arms manufacturer Armscor Global Defense, which we believe is to discuss possible representation or even local production of munitions that could be marketed to the Philippine government.


What's Next:

At the moment, the deal between Spain and the Philippines is not yet finalized, although it is expected that it would proceed as planned. It would be a win-win situation for both countries, as they both stand to benefit from such deal. 


Nonetheless, the DND and AFP should start negotiations with Spanish defense companies by now considering it takes a lot of time to complete a deal, and more time for the actual delivery.

MaxDefense would provide updates on these upcoming deals with Spain, as well as updates in the modernization program and agreements between the two countries..

Friday, May 29, 2015

Updates on the PAF's Long Range Patrol Aircraft Acquisition - It looks like the P-3C Orion afterall

Since the failure of the 1st bidding attempt for the Philippine Air Force's (PAF) Long Range Patrol Aircraft (LRPA) acquisition project, the Department of National Defense (DND) has not restarted the bidding for a second attempt, which is the most possible direction the DND would be going to. None of the possible bidders made it through the submission of bids, even after Elbit Systems and IAI Elta, both from Israel, submitted their Motion for Reconsideration for the DND to consider their bids.

The other contenders for the project were Saab Asia Pacific, L3 Mission Integration, Lockheed Martin, PT Dirgantara Indonesia, and CASA-Airbus Defense and Space. This project and bid failure was previously discussed in an older MaxDefense blog entry's update section dated August 11, 2014 (bottom part).

With China's aggressive expansion in the West Philippine Sea, including the Kalayaan Group of Islands and the Philippines' own Exclusive Economic Zone, the Armed Forces of the Philippines (AFP) has been dependent on the limited surveillance capbilities of the PAF's Fokker F-27 Friendships, C-130 Hercules, and N-22B Nomads, as well as the Philippine Navy's BN-2 Islander fixed wing aircraft. All of these are not designed for maritime patrol and surveillance and are actually tactical transport aircraft. Aside from these assets, the AFP has become dependent on the information provided by the US military through the US Navy's P-3C Orion and P-8A Poseidon maritime patrol aircrafts. Both types are rotationally stationed at Clark Air Base in Pampanga in support of maritime patrols at the West Philippine Sea and South China Sea area.


The Lockheed P-3C Orion is currently the most prolific MPA asset of the US Navy.



Without a truly capable maritime patrol surveillance capability, this type of aircraft has become one of the most sought-after equipment for the AFP Modernization Program. With the recent updates on the policies of the United States government, as well as other friendly countries like Japan and Australia, other options have been made available to the DND & AFP to fill-in this requirement. But one thing is certain: all options from these countries revolve around the Lockheed P-3C Orion MPA.


Previously the PAF operated F-27MPA Maritime Patrol Aircraft like the one shown above, but were retired only after a few years after losses and lack of maintenance.



The Lockheed P-3C Orion:
Ever since the PAF sought for a replacement for its Fokker F-27MPA Maritimes in the late 1980s, they have always been fixated at the possibility of acquiring the Lockheed P-3 Orion from the Americans. This was especially true they try to compare themselves with other American allies in the Western Pacific region like South Korea, Japan, Thailand, Australia and New Zealand, who all have this aircraft in their inventories. The aircraft's ruggedness and flight performance, proven surveillance capabilities, compatibility and interoperability with the Philippines' main ally and strategic partners made it a very logical choice.


Among other ASEAN militaries, only Thailand operates the P-3 as its primary MPA asset.
Photo copyright Analayo Korsakul c/o Airliners.net. 


Its surveillance systems are designed to detect and monitor surface activities, as well as detecting submarines underneath the sea. Aside from being a surveillance platform, it also has the capabilities to carry and launch US-standard anti-submarine torpedoes and anti-ship missiles, as well as depth charges which makes it an all-in-one platform for naval purposes.

Although bristling with all the bells and whistles that the PAF and PN dreams off, there are also downsides on the Orion, mainly on its airframe and design age, and operating costs. Being an aircraft model based on the 1950s Lockheed Electra turboprop airliner, the design has become out of date. And with the "Charlie" model built by Lockheed in the 1970s to 1980s, the airframes are now reaching almost 40 years old on the first batches. Its 4-engine configuration using the Allison T56, which is the same as those used by the Lockheed C-130H in PAF service, are also expected to consume more fuel than smaller, newer 2-engined aircraft like the CASA-Airbus C-295 already in service with the PAF. There were already previous reports wherein the PAF was having difficulty operating C-130s because of fuel consumption, so operating the P-3C won't be any different.

Spare parts will also be another issue, as it is only available from the US, and partly from Japan (being a licensed builder of the type), and new parts will surely be on a decline as the type is already out of production, and most major P-3 operators are already shifting to newer models like the USN and RAAF to the P-8A, and the JMSDF to the P-1. These were actually among the reasons why the DND decided to go for a public bidding process to acquire MPA for the PAF. But for some reason, the decision to reconsider the plan to acquire P-3C might mean some positive changes in the defense planning and budget allocations for the PAF recently that may not be available to the public.


An illustration of the Lockheed P-3C Orion showing its design features.




Recently, there were several news reports of the Philippine government's agreements with the US and Japanese government for military assistance including possible transfer of excess defense articles. And the most reported equipment being prioritized for transfer are P-3C Orion maritime patrol aircraft.


A JMSDF P-3C (left) and a USN P-3C (right) fly overhead a USN Los Angeles-class attack submarine USS Houston (center) during Exercise Keen Sword 2011.
Photo taken from Wikimedia Commons.



The Main Option: US Navy Lockheed P-3C:
With the US Navy being the main user of the P-3C, and is slowly shifting to the new Boeing P-8A Poseidon to replace the old workhorse, the US is the most possible source of excess P-3C for the PAF. It is believed that this request, among with other equipment, were discussed by Defense Secretary Voltaire Gazmin and his American counterpart Ashton Carter in Hawaii mid this week. Some DND and PAF sources told MaxDefense recently that there was a request for between 2 to 4 P-3C Orions to the Americans for use and deployment to WPS patrol missions, although it is also unconfirmed yet if it was the Americans who made the offer. They are expected to operate together with USN P-3C and P-8A aircraft based in Japan but are temporarily stationed at Clark Air Base.

The most possible option is for the Americans to transfer aircraft that are stored by the Aerospace Maintenance and Regeneration Center (AMARC) in the continental United States, and refurbish it as part of a Foreign Military Sales (FMS) deal. But there is a possibility, due to the urgency of the requirement, for the DND to push for a "hot transfer" of the aircraft, meaning a direct transfer of a servicable unit to the PAF with refurbishing to follow later on, to speed-up the process. 


USN P-3C Orions rotationally based at Clark Air Base. A hot transfer can be made by directly handing over a fully-serviceable aircraft to the Philippine Air Force while the aircraft is in the Philippines.
Photo taken from Wikimedia Commons.




The Secondary Option: Japan Maritime Self-Defense Force Kawasaki P-3C Orion:
Aside from the Americans, another possible option of sourcing P-3C are those from Japan. Built under license by Kawasaki starting in 1978 up to 1997, the P-3C used by the JMSDF are said to be among the most well maintained and newest airframes in the world. Japan currently operates the second largest fleet of P-3C Orions in the world, but will be slowly shifting to the longer ranged, newer, jet powered, and homegrown Kawasaki P-1 aircraft. 

Being among the most affected by the aggressiveness of China, Japan is a more willing partner in strengthening the capability of the Philippine armed forces, in the hope that a strong AFP can be an effective force in a common goal of containing China's expansion efforts, and to be a strong partner for stability in the region. Japan has always been open in providing the necessary aid to its friendly neighbors, and with its recent changes in policy of exporting weapons and arms, the Philippines are among those expected to be on the receiving end. Recent press releases already indicated the request by the Philippine government for excess P-3C Orions from the Japanese Ministry of Defense, an indication that such possibility is becoming reachable.

It should be of important note that Pres. Aquino is scheduled to meet with Japanese Prime Minister Shinzo Abe next week, and among those expected to be discussed is the framework on the transfer of defense equipment and technology to the Philippines.


The JMSDF is the second largest operator of the P-3C Orion. Theirs were built under license locally by Kawasaki Heavy Industries. The P-3C in the JMSDF are scheduled to be slowly replaced by the new Kawasaki P-1.
Photo taken from Wikimedia Commons.


MaxDefense sources also indicated a short term request for around 2 to 4 P-3C Orions are among those included in documents provided by the DND to Japan's Ministry of Defense of possible arms for transfer or sale to the Philippine government. But sourcing from Japan might not bear immediate fruit, due to the timing of replacing their fleet by the new home-grown Kawasaki P-1 which will not be made in a fast pace, and due to political reasons related to their recent shift of policy in defense and security. But Japanese sourced P-3C can be a very good option in the long run, as more units can be made available to the PAF, either as spares source or as additional aircraft to meet its longer term goal of having at least 6 long range MPA in the PAF's inventory.


A JMSDF P-3C Orion MPA.
Photo taken from Today's Atsugi blogsite.




The Dark Horse: Royal Australian Air Force AP-3C Orion:
A possible 3rd source of P-3 Orions can be those from Australia, another friendly country with an interest in the stability of the West Philippine Sea. The Royal Australian Air Force has already started reducing the Orion fleet and replacing it in the next few years. Their aircraft, called the AP-3C, is an upgraded version made by L-3 Communications with new mission systems, radar, and accoustic systems.

Previous reports indicated that the RAAF have retired at least 2 AP-3C aircraft at the end of 2014, and these might be available for transfer subject to approval by the Australian and US governments. Aside from the 2 retired aircraft, the RAAF is expected to retire another batch of aircraft starting December 2015 until 2016. The RAAF will start receiving their recently ordered Boeing P-8A Poseidon starting 2017, and the AP-3C are expected to be fully retired from RAAF service by 2019.

Should the 2 retired aircraft be made available for the Philippines, it would be possible to have the aircraft by next year, and could be among the fastest options available to the PAF. 



AP-3C Orion MPA of the Royal Australian Air Force.
Photo taken from Air Force Technology website.




PAF and PN Training in Modern MPA Operation:
The Philippine Air Force and Philippine Navy have been ramping up their chances in gaining experience with working on modern MPA from the US Navy, as well as the Royal Australian Air Force. The USN have been flying P-3C and P-8A from Clark Air Base for some time now, and has allowed PAF and PN personnel to go with them at several occassions. Their recent announcement to continue and even increase their sorties on maritime patrol in the WPS and SCS could also provide Philippine personnel some flight time aboard these aircraft. 

Recently, the RAAF also deployed their AP-3C to the Philippines during Balikatan Exercises 2014, and gave PAF and PN officers and men a chance to observe and learn from standard maritime and anti submarine patrols, and see the capabilities of the aircraft.


PAF personnel aboard a RAAF AP-3C Orion as observers during Balikatan Exercises 2014.
Photo taken from the Australian Defence Magazine.


Filipino officers with US Navy aircrew aboard a P-8A Poseidon aircraft during one of its patrols in the West Philippine Sea.
Photo taken from Rappler's website.



With Japan possibly trying to get access to temporarily and rotationally base some of their surveillance aircraft in the Philippines (which definitely includes the P-3C), it is not far fetched that the JMSDF would be giving PAF and PN personnel the training and experience they need in MPA operations, as part of the agreement. This is in addition to those already provided by the US Navy.



MaxDefense's Opinion:
The P-3C, although the platform is aged, is still a capable maritime patrol and anti-submarine warfare platform that is at par or even exceed the capabilities of newer models like those offered to the Philippine Air Force last year. Being the standard MPA of many of the country's security and strategic partners, having them in the short and medium term goals (2015-2022) could be beneficial to meet the immediate requirements sought after by the AFP and the Philippine government as a whole. They are also the fastest possible option right now to fill-up the gaps in the capability of the Philippine military.

Being at par with modern standards, the P-3C is also a suitable bridge to build up the knowledge, experience, and capability of the Philippines and catch-up with the rest of the world, while preparing for more capable platforms in the future.

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The DND and AFP must not only look at the short and medium term goals. Ultimately, the P-3C will need a replacement by a newer and more capable model in the long term (starting 2022 and beyond), and while the P-3s are expected to serve for at least 15 more years with the PAF (as stipulated by the law), the Philippine government should not be complacent again as it did in the past when it forego a chance to replace the Fokker F-27MPA and lose the knowledge and capabilities the PAF once had.

MaxDefense would be closely monitoring the upcoming meeting between Pres. Aquino and PM Abe next week, as it might have some positive implications for this acquisition project.






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UPDATES:
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June 8, 2015:
With the visit of Pres. Aquino to Japan resulting to agreements that will help pave the way for Japan to transfer defense equipment to the Philippines, among those being touted as requested by the Philippines DND are for anti-submarine surveillance aircraft. Although unnamed, it would definitely imply to the P-3C Orion built by Kawasaki, wherein Japan has been retiring a number for quite some time now. Some press reports sourced from Japanese media also directly indicated the P-3C as offered by Japan. The reports also indicated that radar systems were also among those considered for transfer, although not much information was provided on what type.

According to MaxDefense sources, the Philippines and Japan are working for the transfer, either by grant (assistance) or heavily discounted sale, of somewhere between 2 to 4 P-3C aircraft, depending on the finalized discussions that are expected to proceed within the year. The aircraft could be sourced from earlier retired units stored in Japan, and/or from existing fleet aircraft that are scheduled to be retired either late this year or by next year through hot transfer. But be wary of erroneous posts being circulated online by some so-called defense groups that confirms the transfer of 4 P-3C from Japan. Be aware that all these are still being discussed and there is no finalized agreement yet on the proposed transfers. Until a final agreement is reached, everything discussed here can only be considered as plans and proposals.

There are worries that the US might restrict or block the transfer of the aircraft, or certain important parts or systems of the aircraft, but MaxDefense sources from the DND confirmed that the US government and Department of Defense are not expected to restirct or block the aircraft's transfer from Japan to the Philippines. In fact, the US government is also looking at providing US-built P-3C through Foreign Military Sales or Foreign Military Assistance aside from those offered by Japan. More worries are actually on the ability of the Philippine Air Force to absorb the P-3C, as the PAF (and Philippine Navy too) will need some time to train and master the operation and maintenance of the aircraft, which might be too advanced for the PAF and PN to immediately be proficient in.

Aside from P-3C, the DND is said to have included in their papers submitted to the Japanese MoD of what else could be transfered to the Philippines, which may include HADR capable equipment, which includes transport aircraft like JASDF C-130H Hercules, and JGSDF UH-1H and UH-1J Huey helicopters.


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June 25, 2015:
The Department of National Defense (DND) finally confirmed their intention to acquire used Lockheed P-3C Orion maritime patrol aircraft from Japan. These was made by the DND's spokesperson, Dr. Peter Paul Galvez, on June 25, 2015. He said that those being considered are from the excess defense article sources of the Japan Maritime Self-Defense Force (JMSDF), the operator of the P-3C in the Japan SDF.

Another news report came out within the day, sourced from an anonymous DND official, saying that the DND was interested to acquire around 4 to 6 units of ex-JMSDF P-3C Orions, a number that is far greater than what was earlier confirmed by MaxDefense sources of around 2 to 4 units. But the report's source was negative on the possible inclusion of US-made surveillance systems, particularly the anti-submarine warfare (ASW) suite which is the most important system of the aircraft, due to possible US government rejection of such transfer to the Philippine armed forces. It's absence from the aircraft system would reduce the aircraft to be only capable of surface warfare and surveillance which is a far cry from a modern maritime patrol aircraft's capability.  

MaxDefense believes that this would be a test to the Philippines' close relations with the United States, and to the meaning of being a Major Non-NATO Ally. The ASW suite is the cornerstone of the P-3C's capability, and it's absence from the aircraft system would reduce the aircraft to only be capable of surface warfare and surveillance, which is a far cry from a modern maritime patrol aircraft's capability. This would not enable the Philippines to use the aircraft to detect submarines entering its territorial, archipelagic, and EEZ waters. The only solution aside from pushing the US to allow the ASW suite's transfer is to acquire them from Japanese or other sources. This is possible, but this would definitely cost the Philippine government, and would delay the deployment of the aircraft despite the urgency because of the threat from China.

The ASW system's absence could also mean that the US does not entrust the Philippines with such capability. Considering that the P-3C is not the US military's premier maritime patrol aircraft anymore with the introduction of the newer and more capable Boeing P-8A Poseidon, this could definitely be damaging to the relationship between the allies, and could be used by those left-wing opposition groups who are against the AFP Modernization, the VFA & EDCA with the US to support their reasons to reject these agreements and push their own unhelpful cause.

Aside from pursuing the acquisition of P-3C Orions, the DND also confirmed that the Long Range Patrol Aircraft (LRPA) project for the Philippine Air Force is still a go, although the bidding could not proceed because it was among those pending due to Malacanang's decision not to abruptly sign the Revised AFP Modernization Act for reasons still not confirmed by both the DND and the Office of the President. This project is said to run astride with the P-3C Orion acquisition, alhough the concept of operating two types of MPA aircraft is still questionable.

Philippine Navy Modernization Projects

Philippine Air Force Modernization Projects