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 new frigate. Show all posts
Showing posts with label new frigate. Show all posts

Wednesday, October 9, 2013

Philippine Navy Frigate Acquisition Project - An Analysis of the 1st-Stage Bidding Specifications

Finally what we've been waiting for is out. MaxDefense has obtained a copy of the 1st-Stage Bidding Specifications released by the Philippines' Department of National Defense (DND) for the Philippine Navy's New Frigate Acquisition Project. This is the basis for contending bidders on the initial bidding stage, with a budget of Php 18 billion for 2 frigates. Many suggest that the frigates are to become glorified Offshore Patrol Vessels based on the said specifications.


MaxDefense earlier believes that the Incheon-class frigate will be the basis of the frigate program, but it is worth checking what will be the final output of this bidding process.

MaxDefense summarizes the important details of the said 1st-stage bid specifications, with a few edits as shown below (additional commentaries in Italics):
==================

Technical Specifications:
Budget: Php 18 billion for 2 brand-new frigates.
Capabilities: 
- Anti-Air Warfare (AAW), Anti-Surface Warfare (ASuW), Anti-Submarine Warfare (ASW), and Electronic Warfare (EW);
- Extended Maritime Patrol with embarked helicopter;
- Operation on up to Sea State 6

Dimesions: per function of design (depend on bidder's proposed design
Displacement: per function of design (depend on bidder's proposed design)
Range: 4,500 nautical miles @ 15 knots;
Endurance: 30 days in tropical condition;
Speed: maximum continuous of 25 knots;
Boats Carried: minimum of 2 Rigid Hull Inflatable Boats;

Operating Environment:
- Operation at Sea State 6,
- Non-degradation of warfare mission at Sea State 5;
- Helicopter operation at Sea State 4;
- RHIB operations at Sea State 3

Complement: per function of design (depend on bidder's proposed design), but will have a non-organic crew of 8 officers, 16 enlisted personnel (embarked Task Force/air crew/1 SEAL team.)

Propulsion: minimum of 2 engines with 2 propellers with reduction gear box;
Power Supply: minimum of 3 diesel generators;
Replenishment at Sea Capable.

Navigation Equipment:
- minimum 2 navigation radars (X-band and S-band), at least 1 in solid state design, capable of Automatic Radar Plotting Aid (ARPA), Automatic Identification System (AIS) and Automatic Tracking Aid (ATA);
- GPS;
- depth sounding set;
- vessel tracking system compatible to Philippine Navy's system

Communications:
- Standard VHF AM/FM and UHF radios; 
- Satelite Communications (SATCOM) system;
- Identification Friend or Foe (IFF) system;
- "Fitted for but not with" Tactical Data Link (NATO standard), still to be determined which type, supplied by PN;
- Local Area Network (LAN); 
-Connectivity to the PN's Littoral Observation Stations and Maritime Research Information Center.

Sensors, minimum requirement:
- Combat Management System (CMS), readily upgradable;
- Fire Control System integrated to CMS, can track and engage surface, air and missile targets simultaneously;
- Fire Control Radar and/or Electro-Optical targeting system;
- Electronic Support Measures (ESM) with Radio Detection and Finding (RDF);
- 2D air search radar for air surveillance and target acquisition, minimum range of 80nmi, can detect sea-skimming missiles with maximum altitude of 10ft., integrated to ESM and CMS;
- 2D surface search radar, can detect anti-ship missile threats minimum range of 40nmi, integrated to ESM and CMS;
- Passive and Active Sonar system;
- Decoy launcher minimum 6 tubes per side or centrally rotating launcher

Weapons Systems, minimum requirement:
- 76mm gun at forward section with target tracking radar and/or electro-optical target acquisition and fire control computer;
- 1 x stabilized secondary gun;
- 4 x 50-caliber machine guns;
- primary and secondary guns shall be integrated to combat management system;
- 4 x surface-to-surface missile launchers, minimum 50km range, active homing seeker and ECCM capability;
- surface-to-air missile launching system, minimum quadruple launcher, minimum 6km range, IR or semi-active homing seeker, with ECCM and/or IR CCM capability;
- anti-submarine torpedoes, minimum range 2km, minimum depth 500m, with acoustic countermeasures capability, 2 x triple launchers (one on each side);

Flight Capability: Hangar and deck facilities for at least 1 helicopter up to 10-tons. 
Helicopter Hangar Dimensions: 14.3m L x 9.5m W x 4.5m H, capable of accepting 10-ton helicopter design;

Ammunition:
- minimum 10 rounds each for surface-to-air and surface-to-surface missiles;
- minimum 6 torpedo rounds and a dummy torpedo;
- minimum 652 rounds assorted 76mm ammunition;
- fragmentation and high explosive rounds for secondary gun;
- minimum 54 rounds for assorted chaffs and decoys;
- minimum of 2 ammunition storage spaces
==================

Additional Information:
Aside from the specifications released by the DND, PTV-4 was able to interview the commanding officer of the Philippine Navy's Patrol Force, Commodore Jose Renan Suarez, wherein he pointed out a few of the basic information of the frigate project. He emphasized the availability of a main gun firing 120 rounds per minute, and that the ship would be built to accept numerous upgrades in the future to be relevant and competitive with new threats.


Points for Discussion based on the Information:
There are 2 parameters set on this bidding that must be considered before making conclusions:

First, the project will go through a two-stage bidding, with the initial bid only intended to provide basis of capability of competing bidders to comply with the initial specifications;

Secondly, all specified requirements in this specification by the DND are "minimum requirements", and bidders may propose a better system according to their decision.


Similar to what the DND and PN did for the Strategic Sealift Vessel, the manufacturers are given the free-will to submit a hull design that would fit to the requirements, without being specific on the dimensions and displacement. The range and endurance is acceptable for frigates, although most corvettes and OPVs also have the same capabilities with this regard. The speed appears to be slow as compared to typical frigates which have design speeds between 29 to 32 knots. Most ships with 25 knots maximum are usually offshore patrol vessels or corvettes with an all-diesel propulsion in CODAD or CODOD configuration. The propulsion requirement calls for at least 2 engines, which is standard to most warships, but it did not indicate the propulsion configuration, leaving it open for bidders to propose and if it would incorporate other propulsion systems like gas turbine or electric system. 

No indication that a gas turbine engine is required, although the specifications only allowed for minimum requirements.
Photo taken from General Electric website.

Previously the Philippine Navy high command announced the preference on use of diesel engines or diesel engines in conjunction with a higher output alternative power source for high speed operations. This was the main reason why they rejected earlier offers by the US government for COGAG-configured Oliver Hazard Perry-class frigates so it is safe to assume that 2 diesel engines are the minimum. So we could either see a CODOD/CODAD configuration, or CODOG at best depending on what the bidders can offer.

The specifications also included a clause that requires the hull design to be based on a proven design that passed extensive model tests, with emphasis on survivability, being able to withstand damage and flooding in any 2 adjacent watertight compartments. This is very important since the ship will be used for combat operations and high-threat environments. This clause also strongly supports the previous requirements disallowing the AFP to be end-users of unproven designs. This would hurt some of the prospected bidders like ST Engineering which may offer a design that is unproven although derived from a smaller but proven ship's design.

The organic complement appears to be a matter of function of design and automation according to the proposal, but since budget is a major factor, MaxDefense expects the ship to have less automation compared to most recent designs. This would push the number of crew to a higher level, with an estimated crew of around 160 men and women. Non-organic complement includes the aviation crew and pilots (4 pilots, 2 TACCOs, 8 enlisted personnel), a SEAL team for special operations (1 officer and 7 enlisted personnel) and might also include enough accommodations for task force officers (1 senior officer, 1 junior officer, 1 enlisted personnel) indicating that the frigates can be used as task force ships or SEAL insertion platforms.


A PN SEAL team, together with their RHIB can call the new frigates their home.
Photo taken from US Navy website.

The navigation requirements appear to be standard, and is somehow available on some of the Philippine Navy's current assets. Same for the communications requirements as well except for the requirement for connectivity to "Littoral Observation Stations", which MaxDefense believes to be the National Coast Watch System. Such system is also currently available with the BRP Gregorio del Pilar. A requirement for a future Data Link is also present, and appears to be "fitted for but not with" due to the absence of such system within the AFP. Upon decision of the AFP which type would be used by the entire armed forces, only then can a Data Link be installed on the ship. Due to the Philippine military's close relationship with the US, it is expected that the Data Link will somehow be an American type, possibly the Link 16.

It is in the weapons and sensors that MaxDefense finds interesting discussion. The minimum requirement calls for a 2-dimensional (2D) air search and surface search radar systems. This appears to be contradictory to what the PN was planning for some time. Previously a released Request for Information (RFI) by the US Navy's Naval Sea Systems Command 2 years ago requires a minimum of a 3D-radar set for a possible PN OPV requirement. Also, 2D-radar sets may not be able to complement most modern anti-aircraft missiles, as the system can only provide bearing and range information but not the elevation. Examples of 2D radar sets that fits the range include Saab's Sea Giraffe LT, Selex's RAN30X/I, and Terma's Scanter 4100 series, which are mostly used for small OPVs or as secondary radar systems for surface combatants. 


A 2D-radar system was specified for the air and surface search radar requirements. Above is the Selex RAN30X/I which appears to meet the requirements.
Photo taken from Selex Sistemi Integrati website.

The requirement for sonar systems, which only said as capable of active and passive detection modes, remains a mystery due to lack of further information. No specific information if t would be a hull-mounted sonar, a towed array sonar, or both. This would probably be clarified later on as the project matures.

The ship's main gun will be a 76mm type, probably an Oto Melara model due to commonality with current PN systems. Although not in the specifications, the earlier report from Commodore Suarez's interview indicated a 120rpm gun, which is possibly the 76mm Super Rapid version. A secondary gun was also specified, and was designated in the specifications as a "CIWS" but did not mention the capability to shoot down incoming high speed targets like anti-ship missiles or aircraft. MaxDefense believes that the specification meant  it be probably like the Mk. 38 Mod. 2 gun planned for the Gregorio del Pilar-class frigates to simplify logistics and support. 


A 76mm main gun capable of firing 120 rounds per minute is being considered. Above shows the Oto Melara 76mm Super Rapid naval gun.
Photo taken from naval-technology.com.

An Electronic Countermeasures (ECM) suite appears to be not specified, although ESM and RDF were included in the Electronic Wafare (EW) system. Anti-ship missile and torpedo decoy launchers are also required, and will be integrated to the CMS and EW systems. Further clarification might be made if a full ECM suite is needed, similar to the AN/SLQ-32 used by the US Navy and LIG Nex1's Sonata EW System. MaxDefense places this requirement on top of priorities in the absence of an effective anti-aircraft and CIWS system as active defense against incoming missiles. 


Labelled by the DND and PN as a CIWS, the specifications appear to point out to a secondary gun system similar to the Mk.38 Mod.2 gun mount that are scheduled to be installed on the PN's Gregorio del Pilar-class frigates. This gun system is not designed to shoot down incoming missiles, but can be used for slow and small surface targets like terrorist or pirate boats.

The numbers of anti-ship missiles appears to be below the standard mount of similar-sized ships, but the ship would possibly be able to carry up to 8 launchers when necessary as this is the standard number of mounts designed for launching tubes. Requirement is for it to have an active homing seeker and ECCM capability, and a minimum range of 50km. This means missiles like the Boeing Harpoon and MBDA Exocet Blk. III are acceptable, while shorter ranged missiles like MBDA's Marte Mk.2 are out. 


The specifications require a surface-to-surface missile with a minimum range of 50km, with active homing seeker and ECCM capability. Among possible offers may include the MBDA MM40 Exocet Block III anti-ship missile.

But the surface-to-air missile requirement is the most surprising of all, with a minimum range of only 6.0km, mounted in a quadruple launcher. Such requirement means that the minimum air defense requirement is something similar to the MBDA Mistral IR-homing very short range air defense (VShoRAD) missile mounted on a Tetral quadruple mount. Such missile system is not advisable for modern frigate-sized combat vessels as it lacks the range, thus decreasing the capability to defend itself. It decreases the number of defensive layers of the ship, making it easy for OPFOR aircraft with stand-off weapons to engage the frigate, firing at a distance without expecting any defensive threats. Also, the lack of effective air defense system plus the absence of an anti-missile CIWS makes the ship a sitting duck to missile attacks. But since it is just the minimum requirement, contenders can still propose a better system.


Above is the Tetral quadruple launcher for the navalized Mistral VSHORAD missile from MBDA. Indonesia's Diponegoro-class (SIGMA) corvettes are armed with such system.


MaxDefense's Opinion:
This project is a 2-stage competitive bidding, and MaxDefense believes that the specifications released by the DND is NOT FINAL for the frigate project. Since the coming bid would only be a first out of two rounds, it will only accept bidders who would pass the requirements and not yet determine the final winner. 

In short, the 1st stage bidding's specifications are still bound to change, subject to the offer of accepted bidders that may exceed what was initially specified for the project. They will be given a chance to make use of their capability to provide a product that maximizes the budget allocated. Thus, we cannot make a final conclusion yet based on the information we have, but it is highly possible that the final product would definitely be better.

The current specifications does not point to that of a modern frigate due to the following reasons:
- it lacks enough information for possible "fitted for but not with" requirements should the PN find additional funds to upgrade the ships;
- reduced mobility due to low speed and low power for acceleration;
- it has an insufficient active and passive defensive capability;
- a relatively reduced detection and tracking capability;
- lack of strong anti-aircraft system with enough reach;
- unclear ASW detection capability;
- lack of emphasis on stealth or reduced radar cross section capability.

The DND and PN should give more emphasis on items that will be fixed on the ship permanently or for long term, like the hull design, space considerations, propulsion system, and radar system. MaxDefense believes that the PN should have considered at least a 3D radar system as a minimum requirement, and avoid the need to replace the proposed 2D-radar once a decision to upgrade will be made in the future. Propulsion is another fixed system that needs to be looked into.

The DND and PN appears to have given emphasis on the "fitted for but not with" items, as it seems that the direction is on that path. Although no information was released regarding this matter, it is expected to be clearer in the 2nd stage bidding. Ship size and dimension, and power generation requirements are relevant to this, as the ship must be ready to accept such upgrades when the time comes. This lack on initial capability is the consequence of under-funding the project. 


The 1st-stage bidding specifications of the ship has a light sensors and weapons system suite, and may be comparable to an improved Pattani-class OPV of the RTN, as shown above.
Photo taken from mdc.idv.tw.

So is the PN Frigate a "Glorified Offshore Patrol Vessel" as many suggest it is? 

NO. It is too early to say because of the complicated bidding procedure

So until the 2nd-stage bidding starts, it is safe to say that everything is bound to change for the better than what was released in the 1st-stage bid specifications.

MaxDefense will be closely monitoring the updates for this project, with the pre-bid conference scheduled this Friday (October 11, 2013), expect several questions to be thrown and answered at the Supplemental Bid Bulletins in the coming days. 1st-stage bid submission is originally scheduled on the October 25, 2013, with the opening to be done on the same day.

For the complete 1st-stage bidding specifications, an open copy was posted here:

http://www.mediafire.com/view/cjw5782dz18176i/Bid(3)

For more information the concept of a 2-stage bidding, please see here, starting at page 85:

http://www.gppb.gov.ph/downloadables/forms/GPM%20-%20Vol.2.pdf

==================================================

Updates:

October 25, 2013:
For those asking, according to the Supplemental Bid Bulletin released by the DND on October 18, 2013,  the PN Frigate acquisition program schedule has been moved. Probably due to complexity of the project, there will be a 2nd pre-bid conference on November 11, 2013. The 1st bid submission and opening is also moved, from October 25, 2013 to November 25, 2013. Also be reminded that this is a 2-stage bidding process, so don't expect any winners on the bid opening date yet. For further details on the 2-stage bidding process, read this blog again.

====

November 21, 2013:
The bid submission and opening of the Philippine Navy Frigate acquisition program was moved from November 25, 2013 to December 4, 2013. This is to provide more time for bidders to formulate their offers. Details are provided on the Supplemental Bid Bulletin released by the DND on November 18, 2013.

===

December 6, 2013:
UNTV reported that there were 7 companies that submitted a bid for the frigate project. Although there is no indication on the report of which companies submitted a bid, 7 companies is good enough to make the project a competitive one. A copy of the video was posted HERE.

===

February 7, 2016:

WIth new information released, let's re-do the summary found on the first part of this blog entry:

Technical Specifications:
Budget: Php 18 billion for 2 brand-new frigates.
Capabilities: 
- Anti-Air Warfare (AAW), Anti-Surface Warfare (ASuW), Anti-Submarine Warfare (ASW), and Electronic Warfare (EW);
- Extended Maritime Patrol with embarked helicopter;
- Participate in Joint Maritime Operations
- Operation on up to Sea State 7
- Stealth design

Dimesions: minimum 95 meters long, per function of design (depend on bidder's proposed design
Displacement: minimum 2,000 tons, per function of design (depend on bidder's proposed design)
Range: 4,500 nautical miles @ 15 knots;
Endurance: 30 days in tropical condition;
Speed: maximum continuous of 25 knots;
Boats Carried: minimum of two 7-meter Rigid Hull Inflatable Boats;

Operating Environment:
- Operation at Sea State 7,
- Non-degradation of ASuW, AAW, EW mission at Sea State 5;
Non-degradation of ASW mission at Sea State 4;
- Helicopter operation at Sea State 4;
- RHIB operations at Sea State 3

Complement: per function of design (depend on bidder's proposed design), but will have a non-organic crew of 9 officers, 16 enlisted personnel (embarked Task Force/air crew/1 SEAL team.)

Propulsion: CODAD with 4 diesel engines, 2 propellers with reduction gear box;
Power Supply: minimum of 3 diesel generators;
Replenishment at Sea Capable.

Navigation Equipment:
-  2 navigation radars (X-band and S-band), solid state design, capable of Automatic Radar Plotting Aid (ARPA), Automatic Identification System (AIS) and Automatic Tracking Aid (ATA);
- DGPS;
- Integrated Navigation Bridge
- Automatic Identification System
- depth sounding set;
- vessel tracking system compatible to Philippine Navy's system

Communications:
- Standard VHF AM/FM and UHF radios; 
- Satelite Communications (SATCOM) system;
- Identification Friend or Foe (IFF) system;
- Integrated Communications System;
- Voice Over Internet Protocol (VOIP);
- With proponent's Tactical Data Link;
- Fitted for but not with Tactical Data Link (NATO standard), still to be determined which type, supplied by PN;
- Local Area Network (LAN); 

Sensors, minimum requirement:
- Combat Management System (CMS), readily upgradable & proven design;
- Fire Control System integrated to CMS, can track and engage surface, air and missile targets simultaneously;
- Fire Control Radar and Electro-Optical targeting system;
- Electronic Support Measures (ESM);
- 3D air/surface search radar for air & surface surveillance and target acquisition, minimum range of 100nmi for aerial targets and 40nmi for sea targets, can detect sea-skimming missiles with maximum altitude of 10ft., integrated to ESM and CMS;
- Passive and Active Bow-mounted Sonar system;
- Decoy launcher minimum 6 tubes per side
- Fitted for but not with Towed Array Sonar System

Weapons Systems, minimum requirement:
- 76mm gun @ 120rpm at forward section with target tracking radar and/or electro-optical target acquisition and fire control computer;
- minimum 1 x stabilized 30mm to 40mm secondary gun;
- 4 x 50-caliber machine guns;
- primary and secondary guns shall be integrated to combat management system;
- 4 x surface-to-surface missile launchers, minimum 150km range, active homing seeker and ECCM capability;
- surface-to-air missile launching system, minimum two twin launchers, minimum 6km range, IR or semi-active homing seeker, with ECCM and/or IR CCM capability;
- 2 x triple lightweight anti-submarine torpedo launchers, minimum range 2km, minimum depth 500m, with acoustic countermeasures capability, one on each side;
- Fitted for but not with 8-cell VLS launcher

Flight Capability: Hangar and deck facilities for at least 1 helicopter up to 12-tons. 
Helicopter Hangar Dimensions: 15.6m L x 7.24m W x 5.7m H, capable of accepting 10-ton helicopter design;


==================

Friday, September 6, 2013

Is the Philippine Navy experiencing fund shortage for it's new frigate program?

The cancellation of the option to purchase a third Hamilton-class WHEC from the US Coast Guard was announced by the Department of National Defense (DND) last week. Although this was not new since there was already an earlier announcement, the reason this time is different from the first.

Background:
Initially the DND decided to forego the purchase of another Hamilton-class vessel after it decided to instead use the ship purchase budget for capability upgrade for the 2 ships already in Philippine Navy (PN) service. These are the BRP Gregorio del Pilar (PF-15) and BRP Ramon Alcaraz (PF-16), both were stripped of their surface and air search radars, close in weapons systems, electronic surveillance measures (ESM) systems, tactical air navigation (TACAN) system, and other essential equipment before handing-over to the PN. The PN then installed new systems including additional light guns, a new commercial off-the-shelf (COTS) navigation and search radar, a new command and control suit with link with the Coast Watch System, VSAT and new satellite communications equipment and an Electronic Surveillance Measures (ESM) system. But the ships are still short on combat and surveillance capabilities, and the PN is contemplating of installing surveillance and combat systems that will increase the ship's war-fighting capabilities. But nothing much was done on this plan.


MaxDefense expected the USCGC Rush (WHEC-723) as possibly the 3rd PN WHEC.
Photo taken from USCG website.

Surprisingly the DND shifted back to the original plan of getting a 3rd Hamilton-class ship from the US, without mention of anything about the upgrade plan for the two ships already with the PN. This plan was also against earlier DND and PN statements on policy against buying "second-hand"ships, which according to them sealed the Maestrale-class frigate purchase plan's fate.

But again the new announcement to cancel the purchase of a 3rd WHEC is now directed on diverting the ship purchase budget to support the existing Php 18 billion budget for the PN's project for 2 brand new frigates.


Comparable Projects:
Previously MaxDefense brought out the issue of budgeting for the new frigates since there are doubts on what the PN can get based on comparable foreign warship project costs. For those unfamiliar with earlier MaxDefense blogs, please see these earlier posts for reference:

An In-Depth Look at the Philippine Navy Frigate Program of 2013
http://maxdefense.blogspot.com/2013/05/an-in-depth-look-at-philippine-navy.html

and

Proposed Designs Offered for the Philippine Navy Frigate Program 2013
http://maxdefense.blogspot.com/2013/05/proposed-designs-offered-for-philippine.html

Looking back on those previous assessments, it already shows that the PN budget is way lower than those of comparable regional frigate projects. MaxDefense provided some examples, but let us take another stab on the costing of the exemplified ships with the closest cost as the PN budget, as an update from last time:

Damen Schelde Shipbuilding's SIGMA-class
Based on earlier MaxDefense blogs, the Indonesian PKR Project based on Damen Schelde's SIGMA 10514 platform has the closest allocated budget as the PN at $220 million. But there are some information indicating that the Indonesian PKR SIGMA 10514 cost may only cover the hull, and the ship's mechanical and integral electronics systems plus technology transfer, and actual cost may reach closer to $280 million if including weapons and sensors. Also, the contract between Damen Schelde and Royal Moroccan Navy for 3 SIGMA ships (2 SIGMA 9813 version and 1 SIGMA 10513 version) was said to have cost $816 million as of 2008, or around $272 million per ship average although the 10513 version is expected to be more expensive than the shorter 9813 version due to the addition of an additional segment. Take note that the Indonesian PKR is slightly larger than those for Morocco.


Projected SIGMA 10514 frigate for Indonesia's PKR project.


Latest offer of Damen Schelde to Vietnam for 2 corvettes based on SIGMA 9814 was quoted by IHS Janes to probably reach $668 million, or $334 million per ship average, with one probably to be built in Vietnam and the entire contract may include technology transfer clauses.

(Note: The Damen Schelde SIGMA class is classified by a unique numbering system. The first 2 or 3 numbers signifies the length and the last 2 numbers signifying the beam, all in meters. Example: Indonesia's PKR based on 10514 means it is 105m length and 14m beam. Morocco's 10513 is 1m narrower than Indonesia's PKR.)

Hyundai Heavy Industry's Incheon-class:
Earlier information indicated that the price for the initial Incheon-class frigate for the Republic of Korea Navy (RoKN) costed $106.5 million for the hull made by Hyundai and a total cost of $232 million for the entire ship. It is still unclear if this includes Integrated Logistics Support (ILS) packages that is required by the DND/PN, and if Hyundai may opt for selected pricing premium for foreign clients like the Philippine Navy. It is expected that the amount does not include any form of technology transfer, although it is believed that the PN and DND are after this incentive.


Korea's Incheon-class frigate.

MaxDefense now expects the Philippine-offer price of the RoKN-standard Incheon-class frigate to be nearer to $250-$280 million. But the PN may always opt to remove certain items that may not be required, like RoKN-specific systems, and the land attack cruise missile Hyunmoo-3 option. The PN may also opt to replace some more-expensive systems with cheaper ones, like the installation of an OTO Melara 76mm Super Rapid gun instead of the larger and more expensive BAE 127mm Mk. 45 Mod. 4 gun.


So is there a funding shortage?

MaxDefense believes that the PN and DND may have found out that the budget they allocated for the 2 new frigates is not enough to get what they specified the ships to be capable of doing. MaxDefense sources say that the budget is already very tight as it is, and has not much allowance for the PN for additional systems that they may have overlooked. It is worth noting that the DND and PN already added Php 6 billion to the original Php 12 billion allocated for the 2 used Maestrale-class frigates without increasing the Php 75 billion allocated by the government for the Revised AFP Modernization Law for the first 5 years. 

Not only is the budget small, but it is also getting smaller everyday with the value of the Philippine Pesos falling against the US Dollar. The Php 18 billion budget for the frigate program was crafted early this year and was based on an exchange rate of $1 = Php42 ($214 million = Php 9 billion). Presently the exchange rate is around $1 = Php44.5 ($202 million = Php 9 billion), with the Peso down by more than 6% from its value a few months ago, and is still expected to fall in the next few months. It is expected that foreign shipbuilders and system providers will ask payment in US Dollars, and the PN has already lost $12 million per ship due to the declining value of the Peso.



Take note the exchange rate posted by MaxDefense on May 2, 2013 is at $1=Php41.19, while on September 6, 2013 is at $1=Php44.49, a sharp 7.5% fall of peso value already.
Photos taken from MaxDefense blog (top) and Bloomberg website (below).

Opinions and Options:
There are many ways to skin a cat, so they say. And MaxDefense sees three options for the Philippine government to solve this concern:

1. Increase budget allocation for the purchase of new frigate, to meet the budget as specified by the PN's frigate requirements.

This is actually the best solution, but the hardest to attain. The Philippine government may use Executive-sourced funding (so-called "Presidential Pork Barrel") like Fund 151 or Malampaya Special Account, which has been done before to fund AFP-related projects like the purchase of Hamilton-class cutters. There is even a growing consensus on both the government and private sector to use the Priority Development Assistance Fund (PDAF, aka "Pork Barrel") to boost modernization of the entire AFP, so if that happens this might be another source of funding.



An infographic from ABS-CBN shows what Php 10 billion from Legislative PDAF can do for the AFP (photo shows only for PN). Such amount could have given the PN enough room for improvements on the new frigate requirement.
Photo taken from ABS-CBN News website.

In some way, the cancellation of the 3rd Hamilton-class ship was another way to increase funding, this time by realignment of defense project priorities. MaxDefense does not see this as a good option, as we support the purchase of more Hamilton-class ships that are made available for the PN.


2. Avail of soft-loans offered by specific countries like South Korea to fund the ship's purchase.

There were reportedly standing offers for the Philippine government to avail soft loans, the most well-known is the offer from South Korea to avail their goods. Although a downside is the limitations to using that to buy the specific country's products, these countries have likely a strong defense industry and wide product range that the PN or the entire AFP can choose from. The only problem with this is President Aquino's previous statement from SONA 2013 of not availing loans that will become a problem of the next administration.


3. Remove or reduce expensive line items within the frigate program for separate budgeting, but building the ship to be fitted for but not with these items.

This is a common practice for military systems either to save on costs, or if a new technology still under development is expected to be placed on a certain platform. On our case it's the obviously the former. The PN may opt to build the frigate hull according to their expected capability, plus all the important items that will enable the ship to be minimally capable. Some major line items that can be separated are the surface-to-air missile systems, half of the expected anti-ship missile numbers, torpedo systems, anti-ship missile hard kill systems, and one of two possible sonar systems. 

These can already reduce the cost of the ship by around 30%-50%, and can be purchased separately should funding be available. The PN is familiar with this concept and is actually a policy for their purchase of Offshore Patrol Vessels (OPV), which has the option to be heavily armed in case of crisis or emergencies.


The Gregorio del Pilar-class frigates are actually examples of "fitted for but not with" ships. They have the capability to accept additional weapons and sensors when needed.
Photo taken from Philippine Embassy in Washington DC website.

A fourth option is possible, that is for the PN to decrease the specified requirements of the new frigate, either by decreasing its size, reducing the capability, or both, effectively making the ship more of a corvette or OPV rather than a frigate. But MaxDefense does not recommend this option at all as it does not make sense to do such option if the PN believes that they really need a frigate and not a smaller or less capable vessel.

Monday, July 8, 2013

A "New" Maestrale Frigate? Another Case of Lack of Understanding by the Press


In a Philippine Department of National Defense (DND) press conference last July 2, 2013, DND Undersecretary for Finance, Munitions, Installations and Materiel Fernando I. Manalo discussed the status of several ongoing projects including the much awaited new frigate acquisition program. While explaining what happened to a previous plan to purchase 2 used Maestrale-class frigates from Italy, he suddenly uttered the words "...instead of buying second hand we might as well buy a new Maestrale..." while continuing his explanation on the program's status.

The Italian Maestrale-class frigate. The design is already more than 30-years old, why get an old design when new, updated and fresh designs are available worldwide?
Photo taken from Wikimedia.

The next day, Philippine news reports mostly sourcing their content from the French news agency Agence France-Presse (AFP), have published headlines saying that the Philippines will be buying new Maestrale-class frigates from Italy. As one of the largest and oldest news organization with a history of reliable and wide coverage news, it was also picked-up by major foreign-based news outfits, defense and shipping-related publications and internet news, and even blogs and forums. And everything was history.


To those familiar with ship design, you could already see the big difference in technology between a 1970s warship design like the Maestrale-class here....

...and this new frigate design from the 21st century. Notice the sleek and smooth lines of the ship design that contributes to the stealthy features of the warship?

Analyzing the press conference remarks by Mr. Manalo and raw transcripts posted by TheInsider at Timawa Philippine Defense Forum (which fortunately is available online), we can see that Mr. Manalo indeed made an unintended but damaging mistake of saying "buy a new Maestrale". But looking further it appears that he actually meant "buy a new frigate". Mr. Manalo wanted to say frigate, but instead said Maestrale.

DND Undersecretary for Finance, Munitions, Installations and Materiel Fernando I. Manalo.
Photo taken from Interaksyon.com

Although it was a mistake made by Mr. Manalo, MaxDefense does not totally take it against him, rather it was also the mistake of the press. The press just simply quoted USec. Manalo, right? Wrong. Judging from the entirety of the press conference, it shows that the press was not taking into consideration what Mr. Manalo was discussing all along. Or worse, they did not understand what Mr. Manalo was talking about.


Bidding for new frigates were discussed during the press conference. Different shipbuilders like Korea's Hyundai Heavy Industries are interested in the program and is offering their Incheon-class frigate.

Early in the press conference, USec. Manalo explained that the Philippine Navy has just submitted the Acquisition Decision  Memorandum or ADM, which provides the basic information and specification to implement the two-stage bidding. It clearly means that bidding will be made, but has not yet started. He also said that the PN will recommend the services of a specialized consultant to guide the PN , probably with regards to system integration, specific technology information, and other needs of the PN Project Management Team that they may not be very familiar with. Again, there is no specialized consultant yet, but hiring is a strong possibility. These information already points out that the PN has not yet chosen any specific bidder or shipbuilding/systems contractor & integrator until that time. But the press ignored these facts (and even all other issues discussed), went straight for the juiciest part of the interview, and made news history.


New frigate designs, like Daewoo's DW3000H frigate, is available in the market. Why would the PN settle for an old and outdated design?

Also, the Maestrale-class frigates were designed in the 1970s, taking into consideration the warship technology of that time. Besides a relatively small difference in costs, what are the advantages of buying a brand-new ship using a 1970s technology to use against threats that are using 21st century ship technology? The Italian shipbuilder of the Maestrale-class, Fincantieri, have stopped building Maestrale-class ships since the mid-1980s, and are now building new generation frigates based on the latest designs. Why would Fincantieri offer an old ship design when they can offer their latest design to square-off with the latest designs from South Korea, Spain, Australia, US, etc.


Fincantieri, the Maestrale-class' builder, is now offering new designs like the MOSAIC family.
Photo taken from Orrizonte Sistemi Navali website.

So to clarify everything, MaxDefense is confident to inform everyone that the Philippine Navy will be buying brand new frigates, and will not be Maestrale-class ships. With this, we refer you back to our original blog topic posted last May on:

 "Why the Philippine Navy dropped the Maestrale-class" (http://maxdefense.blogspot.sg/2013/05/why-philippine-navy-dropped-maestrale.html), and 

"Proposed Designs Offered to the Philippine Navy Frigate Program of 2013" (http://maxdefense.blogspot.sg/2013/05/proposed-designs-offered-for-philippine.html)

For those who haven't seen or read them yet, these 2 blog topics discuss relevant information on the PN's current frigate program. 

MaxDefense suggests that the DND, especially Usec. Manalo, should be more careful in their press releases next time. DND should give importance in giving correct information, and making sure their spokespersons are very familiar with what they discuss to the press. Committing such mistakes causes misinformation of great scale when taken directly by the press, just like what happened to this Maestrale issue. The DND and AFP should also conduct defense information training to its press corps (who also make mistakes as shown in their past press releases), and invite the local press to attend similar workshops and talks. 

The press should also give more importance in analyzing their reports and transcripts, give some time for research and reconfirmation before publishing their reports. Mistakes like this happen due to lack of understanding by the press on what they are reporting, even with sufficient information already given to them. Another proposal from MaxDefense is to hire defense-oriented reporters who has enough experience in dealing with defense-related news and information. MaxDefense believes that with the current security issues in the Philippines and in the region, the press will have a lot to handle in terms of defense-related issues in the years to come.

Philippine Navy Modernization Projects

Philippine Air Force Modernization Projects