Is the Philippine Navy Ready for Submarines? A Full Background and Review on PN's Submarine Quest

On 20 June 2018, the Philippines' Department of National Defense, through its Public Affairs Director Arsenio Andolong announced that the Philippine government is returning the acquisition of diesel-electric submarines to the Php300 billion Horizon 2 phase of the Revised AFP Modernization Program.

This was met by mixed reactions by the public, considering the acquisition of submarines is a very big leap for the Philippine Navy and the Armed Forces of the Philippines in general due to  submarines being considered a "first world military asset" due to its acquisition and upkeep cost, although it is described as a game-changer in the country's defense capabilities.

But not all are impressed, considering it was mentioned by the DND that the Submarine Acquisition is being put forward without increasing the Php301 billion Horizon 2 Priority Projects budget. This means that certain defense projects may be sidelined to allow the Submarine Acquisition to be given priority, among other reasons.

But the main underlying question here is if the Philippine Navy is ready for submarines?

The Scorpene-class conventional diesel-electric submarine was among those offered to the Philippine Navy lately. This class was designed and made by Naval Group of France, formerly known as DCNS.
Photo taken from Navy Recognition website.

Background:

Many may not know this, but the Philippine Navy has been longing for a submarine capability since the 1950s. The Philippine Navy requested for 3 World War 2 era diesel submarines from the US government, together with PBY Catalina flying boats. In the end, only the flying boats arrived, which were assigned later on to the Philippine Air Force (thanks to naval historian and MaxDefense guest writer PCG Cdr. Mark Condeno for this heads-up).

In the 1970s, former Philippine Pres. Ferdinand E. Marcos expressed his desire to acquire submarines from other countries, specifically diesel-electric models from friendly countries like US and Germany. There were queries made with the German government back then for the small Type 206 coastal submarine, and larger Type 209 submarine, although that is as far as the Philippines has gone back then.

The submarine desire continued on until the 1980s up to the 1990s, when former Philippine Navy FOIC (now Maritime Academy of Asia and the Pacific President) VAdm. Eduardo Ma. Santos endorsed in 1998 the concept of the Philippine Navy having submarines under the AFP Modernization Program mandated by RA 7898 and approved in 1995, and opened up the possibility of acquiring midget submarines from Italy's Cosmo S.p.a. as a preliminary move, while moving on to conventional diesel-electric submarines in the near future. It also appears that the Philippine Navy sent officers to Pakistan to study their midget submarines built locally based on a design acquired from Italy.

The Cosmo MG120/ER midget submarine, which was considered by the Philippine Navy back then should they push to acquire midget submarines to train and familiarise the service in Submarine Warfare.
Photo taken from Cosmo Spa through Maritime Review Philippines.

Aside from that, the Department of National Defense even sent a Philippine Navy officer to study submarine design and construction in preparation for any future requirement to acquire new submarines.

The AFP Modernization Program from 1995 to 2010 passed without the Philippine Navy acquiring submarines, or even a meaningful surface fleet that it can actually say as modern. And it was only natural that submarines will again be floated for acquisition when the Revised AFP Modernization Program mandated by RA 10349 was approved in 2013.

In the Revised Philippine Navy Modernization plan as shown on the "Desired Force Mix" released by the PN in 2014, the plan was to acquire at least 3 conventional diesel-electric submarines within the 2013-2028 timeframe. 

The Philippine Navy Desired Force Mix plan released in 2014, as a guideline of acquisitions for the Revised AFP Modernization Program between 2013 to 2028.
Photo credited to the former Timawa.net forum.

In 2015, another info-graphic was released by the Philippine Navy, again with the conventional diesel-electric submarine still in the acquisition plan, but clearly defined to be part of the Horizon 3 phase from 2023 to 2028.

The Philippine Navy's infographic releassed in 2015 on expected acquisitions under the Revised AFP Modernization Program from 2013 to 2028. It shows that the Submarines are to be acquired in the Horizon 3 phase from 2023 to 2028.
Photo taken from the Philippine Navy's webiste.

Finally, another info-graphic was published by the Philippine Navy in their April 2016 official publications, indicating that the Submarines are integral part of the Surface Action Force of the Philippine Fleet. In a departure from previous plans, it now indicates that the Philippine Navy will need to acquire 6 submarines instead of just 3 to provide a better deterrent capability.

This infographic was released by the Philippine Navy in April 2016, shows that the Philippine Navy will now require 6 conventional diesel-electric submarines for the Revised Navy acquisition plan from 2013 to 2028.
Photo screenshots taken from the Philippine Navy's official publication.

This was later on supported by the submissions made by the Philippine Navy for their Capability Plan under the Horizon 1 to 3 phases, wherein they submitted in 2016 a plan to acquire 2 conventional diesel-electric submarines within the Horizon 2 phase, and 4 more similar submarines in the Horizon 3 phase.

This was taken from one of the submitted reports of the Armed Forces of the Philippines to the Department of National Defense in 2016 which highlights the proposed acquisition program of the Philippine Navy from Horizon 1 (and remnants of the old RA7898 AFPMP), as well as the Horizon 2 and 3 phases of the Revised AFPMP. It clearly indicated the need for 6 submarines, in which 2 to be acquired in Horizon 2 phase.
Photo taken from MaxDefense's sources from the Philippine Navy.

Between 2016 to 2017, further improvements were made by the Philippine Navy for their Horizon 2 and 3 phases proposal for submission to the Office of the President. With a new president at the helm of the country with promises to improve the Armed Forces of the Philippines into new heights, the Philippine Navy again tweaked their acquisition proposal under the Horizon 2 phase. Instead of just acquiring 2 conventional diesel-electric submarines, they now moved even more aggressively forward by instead requesting a fleet of 3 conventional diesel-electric submarines worth Php20 billion each, 7 Midget Submarines for Php5 billion each, and 6 two-man Swimmer Delivery Vehicles for Php35 million each. This is by far the most ambitious proposal made by the Philippine Navy, and was among those submitted to the Office of the President in Malacanang in early 2017 as part of the Php367.7 billion Horizon 2 program for the Philippine Navy alone.

Aside from that, the Philippine Navy has finally made a Submarine Group in its command under the Philippine Fleet, to allow the study of submarine and submarine warfare, as well as prepare the Philippine Navy in its acquisition of submarines. Officers and men assigned to this group were given the chance to study abroad on basics in submarine warfare as well as in submarine construction.

The last version of the proposals made for Horizon 2 phase included the acquisition of 3 conventional diesel-electric submarines, 7 midget submarines and 6 swimmer delivery vehicles, all for a total proposed budget of Php95.21 billion. This proposal was shot down by the government due to high costs. The resulting approved Horizon 2 acquisition did not include any submarines.
Photo taken from MaxDefense sources from the DND.

Unfortunately, the aggressiveness might be too much, as the proposal was shut down by Pres. Duterte and his economic team due to the high price of the proposal. The Philippine Navy was again requested to revise their program to under Php75 billion pesos only. The result of this became part of the recently approved Php300 billion Horizon 2 Priority Projects program, wherein the Philippine Navy is getting Php77.6 billion only. In this approved acquisition program, none of the submarines proposed earlier were included. Not even the two-man Swimmer Delivery Vehicles was there. Instead, any submarine acquisition will be made in the Horizon 3 phase of the RAFPMP, which is scheduled from 2023 to 2028.

Nonetheless, the Submarine Group continued to exist and continue its mandated task of preparing the Philippine Navy for submarine operations.

Then the unexpected happened when in June 2018, DND's Public Affairs Dir. Arsenio Andolong announced that Pres. Duterte and Defense Sec. Delfin Lorenzana has agreed to the request made by Philippine Navy FOIC VAdm. Robert Empedrad to front-load the acquisition of at least 2 submarines into the Horizon 2 phase.




Offers Made to the Philippine Navy:

As early as the Submarine Group's formation, the Philippine Navy has already released a Request for Information (RFI) addressed to several international submarine builders to provide information about their respective products. This is to allow the Philippine Navy to determine what can be acquired with the proposed budget.

According to MaxDefense's sources from the Philippine Navy, among those that replied and provided information are Saab Group - Kockums of Sweden, ThyssenKrupp Marine Systems (TKMS) of Germany, Naval Group (formerly DCNS) of France, Daewoo Shipbuilding and Marine Engineering (DSME) of South Korea, and Rosoboronexport of Russia.

Based on information we gathered, the offers made by these shipbuilders were: a derivative of the A26 submarine design from Saab Kockums, the Type 209/1400, Type 210mod, and Type 212A from TKMS, a derivative of the Scorpene-class from the Naval Group, the Chang Bogo-class from DSME, and the Project 636 Kilo-class from Rosoboronexport.


Due to this blog entry's focus on the Philippine Navy's readiness on submarine operations, MaxDefense will discuss the submarine offers in a separate blog in the future.


Aside from providing information on their submarine products, these shipbuilders already came forward with providing different offers to the Philippine Navy. It appears that numerous meetings have already been made between the Department of National Defense and/or the Philippine Navy, and these foreign shipbuilders or their counterpart defense ministries. 

Remember the visit made by Pres. Duterte to Russia, which was shortened due to the Marawi crisis? He was supposed to visit the Admiralty Shipyard in St. Petersburg, Russia, which builds the Kilo-class submarines. This was a move made by the Russian government to convince the president and his defense and naval leaders to consider Russian submarines for the PN's modernization program.

TKMS, DSME, Saab Kockums and Naval Group executives were reported to have visited the Philippine Navy and the DND for meetings in the past 1 year alone, with the DND's team led by Defense Asec. Jesus Avilla even met with DSME executives in South Korea just last March 2018 as part of the PH-SK Joint Committee Meeting, including a visit to one of the Republic of Korea Navy's Chang Bogo-class submarine ROKS Park Wi, which is now in Hawaii participating in RIMPAC 2018.

TKMS was said to be offering the Type 210mod (top) and Type 209/1400, while DSME offered the Chang Bogo-class submarine (above) which is actually a Korean version of the Type 209/1400.
Credits to sources of photos.

Philippine Navy's Submarine Acquisition Roadmap:

The Philippine Navy has been studying the acquisition of submarines for several years now, and the results of these studies can be seen on the Philippine Navy's decision to organize and open the Submarine Group under the Philippine Fleet.

Among those made by planners from the Philippine Navy is to study the following:

- what is the purpose and rationale of acquiring submarines in the Philippine Navy;

- what approach is best suited for the Philippine Navy in acquiring submarines;

- how type of submarines are needed, and how much is needed to be allocated for the program;


MaxDefense will base its statements below on the Philippine Navy Submarine Group's roadmap.



Rationale:

The primary purpose of acquiring submarines is to raise the combat strength and capability of the Philippine Navy, and in effect the Philippine government as a whole. This will allow the Philippines to defend itself better from foreign threats, and conduct operations that will be beneficial to the defense of the country.

This includes projecting power beyond the shores of the country, as submarines can be used for offensive purposes including launching on land and naval attack missiles against land and sea targets, as well as gathering intelligence and conducting surveillance without being detected by air, naval, and space assets. It can be used also for delivery of SEAL divers for other naval operations that involve special operations.

Sea denial is another capability that submarines can provide, as submarines cannot easily be found, and may leave the opposition guessing on where the submarines are. This gives the Philippine Navy an advantage of keeping the enemy guessing, while submarines has an advantage of striking naval ships without being detected initially.


Comparing to Other ASEAN Countries:

The Philippine Navy actually compared the different procurement approaches made by its neighbouring countries in the ASEAN region.

Indonesia has been operating submarines since the 1960s, and while their old Soviet Whiskey-class submarines were retired in the 1970s, the acquisition of the Cakra-class (Type 209) submarine from Germany in 1981 benefited from the Indonesian Navy's previous experience in submarine operation.

Vietnam's approach was for the acquisition of new submarines, while training and preparing their men and facilities while the submarines are being constructed. Vietnam signed a contract to acquire 6 Kilo-class submarines, inclusive of training in 2009, and received their first Kilo-class submarine in 2014.

Malaysia's approach was for the acquisition of new submarines first, then acquiring a second-hand Agosta-class submarine to allow training and preparation while their new Scorpene-class submarines are being built. Malaysia signed a contract with DCNS to acquire the Scorpene-class submarines in 2002, acquired the Agosta-class submarine inclusive of training from the French government in 2005, and received the new Scorpene-class submarine in 2009. It was only in 2013 that the Royal Malaysian Navy established their Submarine Simulator Training Center to further train and qualify future submariners.

Singapore bought 2nd hand submarines first to train its men on submarine operations, and made use of these old submarines to gain experience and confidence before acquiring new submarines. Singapore acquired 2 Sjoormen-class (renamed as the RSN's Challenger-class submarines) from Sweden, inclusive of training in 1995, and bought used Vastergotland-class submarines (renamed as the RSN's Archer-class) from Sweden inclusive of training in 2005, before signing up for new submarines from Germany in 2013.

Thailand's approach is different, by training first before acquiring any submarine. They had knowledge transfer, education and training agreement with Germany first in 2012, and established a Submarine Simulator Training Center in 2014. It was only recently that Thailand signed up to acquire a submarine using the S26T Yuan-class from China.

When Thailand started to acquire submarines, the ASEAN region is already in an acquisition spree, with Singapore, Malaysia, Indonesia and Vietnam already having capable submarine fleets of their own. The Philippines, if ever, will be the 6th country in the region to start investing in submarines if this program by the DND and Philippine Navy pushes through.
Photo/illustration taken from The Nation (Thailand) website.

The Philippine Navy's approach appears to be similar to Thailand, considering the Philippine Navy has been sending its men for training with other navies including Germany, India, and South Korea. The PN has also stepped up its training programme for submarine operations, with the Department of National Defense already pushing to have training agreements with South Korea's Submarine Force Command, as well as other countries.


Roadmap:

Based on the Submarine Group's plan of actions under the Submarine Capability Roadmap, they divided the program into 3 phases:

Horizon 1 phase - Organize, Research and Training. This phase is mostly non-materiel in nature, and were mostly already completed. This includes the organization of the Submarine Group, knowledge transfer on basic submarine education program, Submarine Concept of Operations (CONOPS), feasibility studies, and circular of requirements (or request for information from submarine manufacturers)/

Horizon 2 will be on Infrastructure, Support Development, and Acquisition. This phase is where advance submarine education programs will be made and conducted, while having material acquisitions including setting-up the Submarine Simulator Training Center, infrastructure development including basing and support facilities, and signing up for the acquisition of submarines.

Horizon 3 phase - Delivery and Acceptance. This phase will include the continuation of submarine education program and making it a permanent part of the Philippine Navy's training curriculum, as well as the delivery of new submarines for the Philippine Navy. This phase also allows actual submarine training using the foreign and PN submarines, while also training on sustainment, preventive maintenance and repair works.


MaxDefense believes that this is the reason why PN FOIC VAdm. Empedrad pushed for the acquisition of submarines within the Horizon 2 phase, to allow the PN to receive their submarines within the Horizon 3 phase and push forward its Submarine Capability Roadmap despite the odds especially in financial capability to fund the program.

This is the Philippine Navy's Submarine Capability Roadmap.
Photo provided by Philippine Navy NRTDC.

MaxDefense's Research re. Dir. Andolong's Statement:

From when the announcement was made up to this writing, MaxDefense was able to ask around as many Philippine Navy officers and DND officials as it can to see if this was true and feasible. And here are the results of weeks of asking around:

It is true that Pres. Duterte and Defense Sec. Lorenzana agreed to assist the Philippine Navy acquire submarines within the Horizon 2 phase due to FOIC VAdm. Robert Empedrad's explanations during previous Senior Leaders Meetings. But it appears to be conditional. The Philippine Navy was asked to make a proposal on how to make this possible, and so far the Philippine Navy is not yet ready to make an agreeable proposal on how to do it.

Among those proposals floated within the Philippine Navy appears to include the following options:

Option #1: The acquisition of 2 conventional diesel-electric submarines will be made as part of the 2nd List of Horizon 2 phase, which is a back-up program that will only be started if the government is successful in funding the Php300 billion Horizon 2 Priority Projects acquisition plan.

Option #2: The budget for the acquisition of two brand new corvettes worth Php28 billion will be reduced, and a follow-on order for 2 more light frigate from Hyundai Heavy Industries will be made. The budget cut from the corvette project will be increased by a boost from the Office of the President, or from other sources outside the Php300 billion Horizon 2 plan.

Option #3: The Corvette Acquisition Project under Horizon 2 will be shelved, freeing the entire Php28 billion originally allocated for it, while getting a boost from other sources of funding to fill the budget gap of more than Php12 billion to acquire 2 submarines.

Option #4: Either to do Options #2 or #3, but instead of sourcing funds from other sources, the PN will either take out its other acquisition plans to raise the needed Php40 billion for 2 submarines, or get the budget from other projects from the Philippine Air Force, General HQ AFP, or Government Arsenal, which means shelving their own approved projects to give way for the submarine acquisition.


Of all the options, the most feasible to MaxDefense and most of our sources from the Philippine Navy is Option #1. But this also appears to be the most difficult to achieve considering the Philippine government is heavily relying on the success of its TRAIN Tax Reform program, and the income of Bases Conversion Development Authority (BCDA).

Up to now, there is no guarantee that TRAIN would be successfully implemented without backlash in other economic advantages. Even the proposed increase in the Department of National Defense's budget for 2019 isn't clear yet if its going to be used for the AFP Modernization, or for retirement benefits.


But what is clear though is the instruction given to the Philippine Navy to start the acquisition process, which the Philippine Navy appears to be giving importance now based on the actions made by the Philippine Navy's leadership as well as the PN's Submarine Group, with the support from the Department of National Defense.

Will the acquisition of Corvettes for the Philippine Navy be affected by the plan to front load the acquisition of submarines into the Horizon 2 phase without increasing the budget? MaxDefense fears this might be the case, unless the DND and PN place the Submarine acquisition project under the 2nd List of Horizon 2 which will be funded separately once the Philippine government finds ways to do so.
Credits to owner of the photo, for reference only.

Submarine Basing:

One more issue that is hampering the acquisition of submarines is the ability of the Philippine Navy to construct at least one, or at best two purpose-built submarine bases in the country. 

Currently the Philippine Navy is already in a tight situation, wherein it cannot even construct a proper naval base that could house its existing surface ship assets like the Del Pilar-class frigates and the Tarlac-class landing platform docks. These ships are using civilian piers in Subic Freeport, Manila, Davao, and Zamboanga City as temporary basing, and has become a very inefficient way for the PN to provide for the ships.

If the Philippine Navy can't even fix their main base in Sangley Point, Cavite, or is even having delays and difficulties in making Naval Base Cebu a reality, then it is really doubtful for the Philippine Navy to even have enough capability for submarine base construction very soon. At best, the submarines will end up using the same berths and wharfs as the surface ships of the Offshore Combat Force or the Sealift and Amphibious Force.

The Philippine Navy is also inexperienced in submarine basing design and construction, and is currently looking for foreign consulting for this requirement alone. Most, if not all submarine offers made to the Philippine Navy included proposals to provide consultancy for the design and construction of submarine basing. This is actually the best way forward, as it allows the Philippine Navy to deal with a single group from basing to submarine construction.

Construction of submarine bases will take years to complete, as their requirements are more intensive than normal surface ship bases.  MaxDefense believes that due to the strategic value of these submarines plus the limited quantity vis-a-vis a largest foreign threat, the Philippine Navy should consider making their submarine base less visible to the public, or at best, covered to protected from surveillance satellites or aircraft. 

Here is an example of a submarine shelter that allows submarines to be hidden from surveillance satellites or aircraft. It is simply a wharf hidden by erecting a huge steel structure with roofing and walls, enclosing the wharf. MaxDefense believes that the waters in the base are deep enough for the submarine to be partially submerged when entering or exiting the naval base.
Photo taken from Google Earth.

If the Philippine Navy intends to order submarines within the next few years, they should be starting to draft the proposals for the submarine basing within this year to determine the budget required for the construction, identifying the best design and refining it further. These processes alone take years to do.

The Royal Australian Navy's HMAS Stirling in Western Australia is home to the RAN's submarine base. A simple berth like the one above, can be used as a submarine basing facility, although it would be better if they can be covered and deep enough to allow a submarine to arrive or depart without being seen by surveillance satellite or aircraft.

Lets make an example of a development in the Philippine Navy: the construction of Naval Base Cebu out of the current Naval Base Rafael Ramos in Lapu-Lapu City, Cebu.

If you look at the base's masterplan, there is nothing allocated for submarine basing. And even if they start to consider it, the base is too space-constraint to have one considering the shoreline's length is already cramped for surface ships. Also, MaxDefense believes that the location of the base is not the best one for a submarine facility in a security perspective. Being along a busy waterway and opposite a shoreline, and in an area where commercial and residential buildings will be constructed overlooking the entire base will make it vulnerable to peering eyes, and makes it easy for the general public to see what's happening in the base, or monitor the deployment of the submarines.

The master plan for Naval Base Cebu does not include a submarine base, nor has enough space for the future construction of a submarine basing facility.
Photo taken from Philippine Navy sources.

Submarine Training:

Considering the Philippine Navy appears to be following Thai model, it is also worth mentioning that the Philippine Navy should start investing in submarine training for its future crew and maintenance teams. 

It should expand its current Submarine Crew Training exchange program, wherein Philippine Navy officers and specialists could train with foreign submarine academies to gain theoretical and basic training for submarine operations and concepts. Currently the Philippine Navy has such exchange program with the Republic of Korea Navy, Indian Navy, and the German Navy.

For example, currently the exchanges with South Korea are limited to 2 officers per year, and this could be increased to include more including enlisted personnel. Similar arrangements can also be made with the US Navy and the Royal Australian Navy, both of which does not require the need for the student to learn the local language due to instructions being done in the English language.

The Philippine Navy must also start to identify a location for its Submarine Training Center like what the Thais did, which will include a facility for a Submarine Simulator. It is highly possible that a Submarine Simulator might be set-up at the Philippine Navy's Naval Education and Training Command (NETC) in San Antonio, Zambales, which is also the expected location for the Philippine Navy's planned Surface Ship Bridge Simulator and other simulation systems planned for future acquisition.

It is also better to package the acquisition and setting up of a submarine simulator center with the submarine supplier, since the simulator should match the submarine to be acquired. MaxDefense got confirmation that most, if not all of the submarine offers made to the Philippine Navy can also provide the submarine simulator system as part of the package if the Philippine Navy asks for it. 

A Submarine bridge simulator like the one above would be among those the Philippine Navy should consider having prior to the delivery of the submarines. There are other simulation systems for submarine operations that can be considered for acquisition to allow the PN to train and qualify crewmembers without too much reliance on the actual submarine.
Photo taken from AFCEA's website.

Acquisition of Training Submarine:

Looking at the Malaysian model, the Royal Malaysian Navy was loaned with a retired Agosta-class submarine previously operated by the French Navy, to serve as a training submarine prior to the delivery of the Scorpene-class submarines they ordered from French shipbuilder DCNS.

The former French Navy Agosta-class submarine FS Ouessant was loaned to the Royal Malaysian Navy from 2005 to 2009 when it was returned to the French government. They then decided to just transfer the ship to Malaysia, which the Malaysian government turned into a museum ship.

Meanwhile, the South Korean model was having midget submarines first before acquiring conventional diesel-electric submarines. The ROKN employed their Dolgorae-class midget submarine for training the initial batch of submariners, while also using them for a number of duties once the ROKN started acquiring the Chang Bogo-class submarines. 

The Philippine Navy may also look at the possibility of having such arrangement with the shipbuilder it will be choosing. For example, German shipbuilder TKMS may employ a Type 206A submarine (if one is still available) as a submarine training ship for the Philippine Navy should they choose TKMS as the prime contractor. But this might be a difficult arrangement considering that many of the countries that offer brand new submarines to the Philippine Navy may not have an available retired but still usable submarine that it can bundle with the deal. 

For example, only Sweden probably can provide such using its Sodermanland-class (upgraded Vastergotland-class) submarine which are scheduled for retirement in 2019-2020, although leasing or purchasing one of these submarines might jack up the cost of the program.

MaxDefense will discuss this in a different blog entry in the near future.

Employing the Sodermanland-class submarine as a training submarine may also allow the PN to use it as a normal attack submarine as it is not too old and may still be good to serve for another 15 years after upgrades. But it may also mean the Swedish government may lease or sell it at a higher price and may affect the PN's budget for the Submarine acquisition project.
Credit to owner of the photo. 

State of the PN's Surface Fleet:

Planning for submarine acquisition doesn't stop on the submarines itself, but also needing to consider the overall state of the Philippine Navy's fleet assets. Currently the Philippine Fleet's surface assets under the Offshore Combat Force, Littoral Combat Force, and Sealift & Amphibious Force are all lacking in sufficient quantity and quality, with ageing assets plaguing the operational availability and capability of units to be able to meet their respective missions and duties. 

It would be best to note that the Offshore Combat Force only has 6 modern naval assets, with 3 still in the process of upgrades (Jacinto-class), while the other 3 ships are being run like hell and have been missing their maintenance schedules just to meet requirements (patrols, attending foreign engagements, joining exercises, etc). The rest are World War 2 era ships that needs replacement 40 years ago.

The Littoral Combat Force is mostly made up  of ageing assets that needs replacement ASAP. Same is true for the Sealift & Amphibious Force.

Despite the Horizon 1 and 2 phases of the Revised AFP Modernization program, the Philippine Navy has not been able to significantly replace its ageing assets, not is it expected to happen within the next 5 years. It is also not helpful if the Philippine Navy divert its funds for acquiring Corvettes and Offshore Patrol Vessels just to fund the submarine acquisition.

MaxDefense believes that priority should be given to improve the surface fleet first and foremost, considering it is the basic fleet asset of a modern navy, while submarines are just welcome additions if the government has the capacity to provide more for the navy.



So, is the Philippine Navy ready for Submarines?

MaxDefense believes that at the moment, the Philippine Navy is not ready for submarines or submarine operations. This is due to lack of qualified personnel, training of crew and maintenance teams, basing facility, or even doctrinal requirements.

All of these deficiencies can be addressed though, with monetary support from the national government since solutions to these problems can be made by the Philippine Navy if only they have the financial capability to do so.

Horizon 2 phase ends in 2022, so the Philippine Navy actually has 4 years to prepare itself to close the gap in the deficiencies they have. So far, MaxDefense does not see a massive improvement in its push towards meeting at least a few of the requirements it needs for submarine operation between 2018 and 2019. Honestly, based on the historical assessment of how the Philippine government and the Philippine Navy move with their funding program and acquisition projects, MaxDefense believes that it is very unlikely that the Philippine government will pour in massive amounts of financial support for the Submarine Acquisition Project to be possible to make into a contract by 2022. The slowness of action by the all parties concern.

Nonetheless, if there is a miracle in the form of a genuine support from the national government within 2018 and 2019 to make this project happen, then it is still possible for the Philippine Navy to meet its goals to sign a contract package to acquire submarines before the end of Pres. Duterte's presidency in June 2022. A miracle.


MaxDefense will discuss more about the Submarine Acquisition Project in future blog entries, once we believe that it is realistic and highly likely that this project will push through. Press releases from the government won't make a dent unless we see signs of real interest in making this project happen within this Horizon 2 phase.




Summary:

1. Submarine Acquisition Project

End User: Philippine Navy (Submarine Group)
Modernization Phase: RA 10349 Revised AFP Modernization Program HORIZON 2 (still to be confirmed due to vagueness by the Philippine government on this)

ABC: Php20,000,000,000.00 per submarine based on PN's previous proposals
First post by MaxDefense: 12 June 2018

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Philippine Navy to Receive 3 More Missile-Ready Multi-Purpose Attack Crafts under Horizon 1 Phase

The Philippine Navy (PN) has quietly moved ahead and implemented the acquisition of another project under the Horizon 1 phase of the Revised AFP Modernization Program.

Based on the Philippine Navy's recent publicly-released documents, as well as confirmation from MaxDefense source, the Philippine Navy has pushed through with the Multi-Purpose Attack Craft (Series 2018) acquisition project, which is a "2nd List of Horizon 1" project that was approved for acquisition.

The MPAC Mk. III built by Propmech-Lung Teh JV. The same design, with probably minor changes, will be used for the 4th batch of MPACs to be acquired by the Philippine Navy.
Photo provided by MaxDefense source.

Another Horizon 1 MPAC?
To avoid confusion, here is how it goes:

The Philippine Navy's Horizon 1 phase, which was approved for implementation in 2014, previously had a Multi-Purpose Attack Craft (MPAC) Acquisition Project with an Approved Budget for Contract (ABC) worth Php270 million. This was also called the "MPAC 3" during its pre-delivery phase. This was awarded to a Joint Venture of Propmech Corporation and Lung Teh Shipbuilding Co. Ltd. The former is a Filipino-owned company while the latter is a boatbuilder from Taiwan.

The boats acquired from this project, now known as the MPAC Mk. III Series 2014 (specifically the BA-488, BA-489, and BA-491) were delivered mid 2017, and are now being installed with weapon systems acquired from Rafael Advance Systems Ltd. of Israel as they are scheduled to conduct the Philippine Navy's first ever test firing of a surface-to-surface missile this coming July, as revealed by PN FOIC VAdm. Robert Empedrad recently.

Now...

This project we are discussing is part of the Philippine Navy's "2nd List of Horizon 1", an extension program of the Horizon 1 phase that was approved for implementation only in early 2016, has an acquisition project for another batch of MPACs. The Philippine Navy, based on new bid documents, appears to call this project the MPAC Mk. III Series 2018, to differentiate it from the MPAC Mk. III Series 2014 project. For convenience, let's call it as how the PN does, although MaxDefense expects the term "MPAC 4" to be used as well.

This project has an ABC of Php270 million (similar to all other MPAC acquisition projects), and involves the acquisition of three (3) brand new MPACs that can be armed with missile systems similar to those of MPAC Mk. III Series 2014.

It was only several weeks ago that MaxDefense was able to confirmed who led the tender for the MPAC4 contract, which is the Joint Venture of Propmech Corporation and Lung Teh Shipbuilding. The Department of National Defense (DND) has yet to complete Post Qualification Inspection on Propmech-Lung Teh, but based on the Special Allotment Release Order (SARO) made by the Department of Budget and Management (DBM) under SARO-BMB-D-17-0024343 approved on 15 December 2017, the value is expected to be at Php269,799,999.99. This amount was released on 18 December 2017 based on the DBM's SARO release records.

One of the MPAC Mk. III Series 2014, BA-488, as seen here in 2017 undergoing tests before delivery to the Philippine Navy. The same design will be used for the MPAC Mk. III Series 2018, wherein 3 units will be delivered.
Photo provided by MaxDefense source..

The MPAC Mk. III Series 2018:

With this MPAC Mk. III Series 2018 already established, let's go further into details.

MaxDefense received information, as well as support from released documents from DND website that this 4th batch of 3 new MPACs will be using the same design as the MPAC Mk. III delivered by Propmech-Lung Teh last year, with probably only minor changes as specified by the Philippine Navy

This would make it easy for both Propmech-Lung Teh JV and the Philippine Navy to get this project out the drawing board and into design final approval since there won't be a need for a major redesigning like what happened on earlier MPAC projects where MPAC Mk. I differs in design from MPAC Mk. II, which also differs in design and purpose as the MPAC Mk. III.

While this contract only includes the boats itself, there is a separate project called the MPAC Combat Systems and Capability Upgrade, which is divided into 2 lots with a total combined approved budget of contract (ABC) worth Php722,000,000.00. The said budget was confirmed through SARO released by DBM in June 2018. And this is among the HORIZON 2 projects recently approved by Pres. Duterte for implementation.

As straightforward as the title of the project, it was meant to provide the MPAC Mk III. Series 2018 with weapon systems and capability enhancements. The same case happened on the MPAC Batch 3 aka MPAC Mk. III Series 2014 where the boats (awarded to Promech-Lung Teh JV) were acquired separately from the weapons system (awarded to Rafael Advance Systems).

Propmech - Lung Teh Joint Venture previously won the bidding to supply the MPAC acquisition under Horizon 1 phase. The end result is the MPAC Mk. III Series 2014, which were delivered in 2017. They are currently being installed with the weapon systems from Rafael, and will test fire a Spike-ER missile this July 2018.
Photo provided by a MaxDefense source.

The MPAC Mk. III Series 2018, like its earlier counter-part, was designed primarily as a small missile-armed patrol boat, rather than as an assault boat. It lacks the front opening bow and ramp that allows easy egress and ingress of troops, and will have less passenger capacity due to the presence of a control system for the weapon systems.

The MPAC Mk. III Series 2018 are expected to have the same dimensions as the earlier Mk. III variant, which are as follows:

Length: at least 17 meters long
Displacement: less than 30 tons (without the weapon systems)
Maximum Speed: at least 45 knots
Range: at least 300nmi at transit speed
Propulsion: 2 diesel engines coupled to water jet system
Complement: 2 officers and 5 crew memebers, plus 8 fully equipped troops.
As-delivered Standard Weapons: 2 M60 7.62mm light machine guns in addition to those to be delivered separately under the MPAC Combat Systems and Capability Upgrade Lot 1 project.

The expected layout of the MPAC Mk. III could be like the one shown on the photo above. Aside from the Typhoon mounts, the boat can also be armed by 2 M60 7.62mm machine guns.
Photo taken from the old Timawa.net forum.

MPAC Mk. III Series 2018 Additional Works:

It also appears that unlike the acquisition of the MPAC Mk. III Series 2014, this current batch will need some additional work on the boat iself, and its already apparent that the Navy is solving this issue.

Due to the rising costs, it could have been difficult for Propmech-Lung Teh JV to win the MPAC 4th Batch without the need to make sure it is profitable and reasonable for them to bag the project. Being commercial in nature, it is normal for the proponent to make sure they will earn from this project.

Propmech-Lung Teh JV's tender price is actually only Php200,000 less than the allocated budget for the project. But it appears that there were a lot of un-included items, probably intentionally removed by the PN TWG from the technical specifications, due to price escalations over the years.

To cover this, the DND released a separate project called the Lot 2 of the MPAC Mk. III Combat Systems and Capability Upgrade, which covers the Mission Essentials Equipment and the MPAC Mk. III Series 2018 Integrated Logistics Support (ILS). Out of the Php722 million intended for the project, Php60 million was allocated for this work's Allocated Budget of Contract (ABC).

Normally, the MPAC acquisition already  should have the items included in this lot, specifically the ILS, communications equipment, shock mitigating seats for passengers, and the ballistic panels and glass on specific areas of the boat.

MaxDefense has reason to believe that Propmech-Lung Teh JV, or any other boat-builder cannot deliver 3 fully functional MPACs with ILS for Php270 million or less. Costs has finally caught up with the times, and the PN has no choice but to adjust its Combat Systems and Capability Upgrade to include these items just to allow the MPAC acquisition to push through without hassles.

Submission and Opening of Bid Envelopes (SOBE) for this MPAC Mission Essentials and ILS Lot 2 
was scheduled on 14 June 2018, and although we still do not have a confirmation who bagged the project, MaxDefense believes it is fitting for Promech Corporation to win the project since they are familiar with the boats and are the most capable of providing the ILS to their own product.

While we still do not know the winning bidder's submitted amount, it is safe to say that the current MPAC 4th Batch, without its weapons system, costs a little less than Php330,000,000.00 for all 3, or
a little less than Php110,000,000.00 each.

Shock-mitigating seats are among those to be procured under the MPAC Mk. III Series 2018 Combat Systems and Capability Upgrade Lot 2 Mission Essential Equipment and ILS. It appears that Propmech-LungTeh JV did not include this in their contract  to deliver the MPAC Mk. III Series 2018.
Photo taken from Propmech's video.

MPAC Mk. III Series 2018 Combat Systems:

There is still little information on the other part of the MPAC Mk. III Combat Systems and Capability Upgrade Lot 1, which is expected to be the project for the procurement of weapon systems for the MPAC Mk. III Series 2018.

Originally it was supposed to have an ABC of Php722,000,000.00 and will only be 1 lot, but the changes in the MPAC Series 2018 acquisition required the Philippine Navy to source out additional funding to cover for the need to acquire lacking equipment on the MPACs. Since only Php722,000,000.00 was released for the entire project, Lot 2 was deducted from the overall budget, leaving Php662,000,000.00 for the Lot 1.

So far, what MaxDefense is sure is that it would be for the acquisition of Remote Controlled Weapons System (RCWS), Multiple Launching System for short-range surface-to-surface missile launchers, and the missiles itself.

While it appears that the Philippine Navy is still in the pre-procurement stage on this project-lot, MaxDefense has strong reason to believe that this would be a Government-to-Government (G2G) acquisition involving Israel and Rafael Advance Systems Ltd. If this is the case, MaxDefense believes that Rafael may again offer the Rafael Spike-ER missile, Typhoon MLS-ER missile launching system, and Mini Typhoon 12.7mm RCWS mount.

The difference from the last Horizon 1 MPAC Combat System project is the allocated budget. While the weapons for the MPAC Mk. III Series 2014 for Php594 million, this time the budget allocated was Php662 million.

MaxDefense believes that the cost increase may be attributed to price escalation and inflation, a poorer US dollar - Philippine pesos exchange rate, and the possibility that the PN wanted to acquire more surface-to-surface missile rounds than before. Each MPAC was designed to carry 4 ready-to-fire missiles in the launcher, plus 10 more rounds located on the boat's storage. MaxDefense won't be too specific, but the previous deal with Rafael did not cover the acquisition of a full 14 rounds per boat.

The Rafael Mini Typhoon 12.7mm RCWS (top) and the Rafael Typhoon MLS-ER (above) are expected to be acquired again to arm the MPAC Mk. III Series 2018 boats under a G2G deal with Israel.
Top photo taken from Rafael's website, bottom photo taken from Philippine Navy's FB page.

Summary:

1. Multi-Purpose Attack Craft Series 2018 Acquisition Project

End User: Philippine Navy (Littoral Combat Force)
Modernization Phase: RA 10349 Revised AFP Modernization Program HORIZON 1 (2nd List)
ABC: Php270,000,000.00
SARO Release: SARO-BMB-D-17-0024343, released 18 December 2017
Lowest Proponent: Propmech Corporation - Lung Teh Shipbuilding Co. Ltd. Joint Venture
Bid Price: Php269,799,999.99
First post by MaxDefense: 30 December 2017


2. Multi-Purpose Attack Craft Mk. III Series 2018 Combat System and Capability Upgrade Lot 2 - Mission Essential Equipment and ILS

End User: Philippine Navy (Littoral Combat Force) - for MPAC Mk. III Series 2018
Modernization Phase: RA 10349 Revised AFP Modernization Program HORIZON 2 (Priority List)
ABC: Php60,000,000.00
SARO Release: SARO-BMB-D-18-0012925, released 01 June 2018;
Winning Proponent: still for public bidding.
Contract Price: TBA


3. Multi-Purpose Attack Craft Mk. III Series 2018 Combat System and Capability Upgrade Lot 1 - (unnamed sub-project)

End User: Philippine Navy (Littorla Combat Force) - to be installed on MPAC Mk. III Series 2018
Modernization Phase: RA 10349 Revised AFP Modernization Program HORIZON 2 (Priority List)
ABC: Php662,000,000.00
SARO Release: SARO-BMB-D-18-0012925, released 01 June 2018;
Winning Proponent: none yet, still awaiting procurement process decision
Contract Price: TBA
First post by MaxDefense: 31 May 2018.



MaxDefense will provide more information in the future, considering the project is still in the early stages and might be delivered only by late 2019. The MPAC Weapon System is also another project worth discussing in the future, as we await for more information regarding the deal.




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U P D A T E S:
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25 September 2018:

The Department of National Defense has finally released the Notice of Award (NOA) for the Multi-Purpose Attack Craft Mk. III (Series 2018) Combat System and Capability Upgrade Lot 2 - Mission Essential Equipment and ILS to Propmech Corporation last 11 September 2018. This is after Propmech was declared the Single Calculated Responsive Bidder last 30 August 2018.

This is so far, the first Philippine Navy project awarded under the Horizon 2 phase.

Propmech Corp. was expected to win this bidding due to their ongoing participation in the construction of the MPACs. The requirement is for the winning bidder to do the works in Lung Teh's boatyard in Taiwan, which means only Propmech can do it with practical ease compared to other potential bidders.

A copy of the Notice of Award (NOA) provided by DND to Propmech Corporation.
NOA taken from DND's website.

While the NOA is out, the Contract and the Letter of Credit are still pending with the DND, although MaxDefense expects the Contract to be signed probably by October 2018. MaxDefense will provide updates once it gets confirmation that the Contract has been signed, and if the LOC is provided, which is the basis of Project Start.

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Elbit Systems Wins Contract to Upgrade Philippine Army M113A2 with RCWS and Mortars

It has been six months since the Horizon 2 phase of the Revised AFP Modernization Program has started. But there are still several projects form the Horizon 1 phase that has yet to be implemented, or even started. In the Philippine Army alone, more than 5 projects are yet to be procured or awarded to a winning supplier, and there are several projects that are already awarded to a winning supplier but is still in the process of pre-delivery.

Despite some discussions we made on our Facebook page early this year, it appears that MaxDefense has not really made a blog entry yet regarding another M113 project that is underway for delivery - the Firepower Upgrade of EDA M113 Project under the Horizon 1 phase of the Revised AFP Modernization Program.

The Philippine Army is to upgrade 5 of its M113A2 into Self Propelled Mortar Carriers using the Soltam Cardom 81mm Mortar (above shows 120mm mortar variant), and 44 M113A2s upgraded with the Dragon 12.7mm RCWS.
Credits to owner of photo.

Project Background:

This project, which is a part of the so-called "2nd List of Horizon 1" that was formed by prioritizing Army projects using the budget originally intended for the delayed Shore Based Missile System (SBMS), involves the upgrade of the M113A2 tracked armoured personnel carriers received by the Philippine Army from US Military Assistance a few years ago.

The project has an allocated budget worth Php 1,051,650,000.00. The project proceeded as a Government-to-Government (G2G) project undertaken by the Philippines' Department of National Defense (DND) and Israel's Ministry of Defense, and was divided into 2 lots within a single project.

The M113 Firepower Upgrade is divided into 2 Lots with a total ABC of Php1,051,650.00.
Photo exclusively provided to MaxDefense by AFP sources.

Both project covering both lots was awarded last year to Israel's Elbit Systems Land & C4I, which has experience in projects with the Philippine Army especially in the M113 vehicle. After months of pre-contract negotiations, the contract between the DND and Elbit Systems was signed in January 2018, and the Letter of Credit was released a few months later, which effectively starts the project duration.

Prior to modernization of the M113A2 into RCWS-equipped vehicles, they were standard M113 APCs armed with a 50-calibre 12.7mm Browning M2 machine gun with either an armoured cupola protecting the front side only, or a 360-degree armoured cupola protection. Both are less suitable for high threat environment, while the machine guns are manually aimed and is not as accurate as those using advanced sights found on RCWS.
Credits to owner of photo.

Lot 1: Upgrade with 12.7mm Remote Controlled Weapons System:

The first lot involves the upgrade of 44 M113A2 tracked armoured personnel carriers by installing Elbit System's Dragon 12.7mm RCWS and Elbit's Combat NG Battlefield Management System (BMS) into the vehicles. This is the same RCWS and BMS installed by Elbit on the 6 M113A2+ that they delivered in a pre-Horizon 1 project covered by the older AFP Modernization Program covered by the 1995 RA 7898.

Elbit will supply the complete Dragon RCWS, and the Combat NG BMS. Installation works and any upgrade to the vehicles will be done in the Philippines by Elbit Systems in cooperation with the Philippine Army's Mechanized Infantry Division.

Close-up of one of the M113A2+ armed with the Elbit Dragon 12.7mm RCWS during field exercises last year. The same RCWS will installed on 44 other M113A2s under this project.
Photo owned by the late John Chua, which gave MaxDefense permission to use his photos in his hayday.

The Dragon RCWS mounts a 50-caliber Browning M2 12.7mm heavy machine gun, and has modern sighting systems which allows for improved surveillance and targeting, as well as day and night capability in providing fire support to dismounted troops. The RCWS also allow the gunner to be inside the armoured vehicle which gives better protection from enemy fire, explosions or shrapnel.

Meanwhile, the Elbit Combat NG battlefield management system allows Command and Control capability, as well as integration with other units using the same system. These armoured vehicles won't be the first ones to have this capability, as the Philippine Army's M113A2+ tracked armoured vehicles are all equipped with the same BMS, as well as the Philippine Army and Philippine Marine Corps' recently delivered Soltam M-71 155mm towed howitzers. More units are expected to operate the same BMS in the near future.

Elbit's Combat NG BMS allows units Command and Control and integration of combat and support units to improve combat capabilities in the battlefield. These batch of M113s isn't the first one to have this capability, as the Philippine Army has been using the Combat NG since the delivery of Upgraded M113s by Elbit Systems a few years ago.
Photo taken from Elbit's website. 

Once the upgrades are complete, the Mechanized Infantry Division will have 50 of its M113s armed with the Dragon 12.7mm RCWS. This also gives more reason for the Philippine Army to continue using the same system in future upgrades of its armoured vehicles for commonality in terms of logistics and maintenance, training, and sustaining these kind of modern assets.

Four of the six M113A2+ armed with the Dragon 12.7mm RCWS. These were delivered by Elbit Systems Land & C4I under the Upgraded M113 acquisition project. The same RCWS will be installed by Elbit Systems on 44 other M113A2 vehicles of the Philippine Army.
Credits to the owner of the photo.

Lot 2: Upgrade to Self Propelled Mortars:

This lot involves the acquisition of 5 Soltam Cardom 81mm mortar systems, and the conversion of 5 of the Philippine Army's M113A2 into Self Propelled Mortars.

While this is not the first attempt by the Philippine Army to have such asset (previously they tried converting a FV432 Armoured Personnel Carrier into a Self Propelled Mortar by installing an 81mm mortar), this is the first time that actual Self Propelled Mortars will be made operational.

An example of an M113 Armoured Mortar Carrier armed with a Soltam Cardom mortar system. The Philippine Army will receive 5 upgraded and converted M113 AMC as part of this project.
Credits to owner of photo.

The Soltam Cardom 81mm mortar has a range of around 7 kilometers, and has a maximum rate of fire of 16 rounds per minute. It is ready to fire around 30 seconds from vehicle halting, and can immediately scoot after firing, which allows it to move away from counter-artillery fire.

While the mortars will be using the 81mm variant, the M113s will be able to shift to the larger Cardom 120mm mortars if the Philippine Army decides to make the shift. In our previous posts in our Facebook page, MaxDefense explained that the Mechanized Infantry Division wanted 120mm version of the Cardom, but was forced to go for the smaller 81mm variant due to current doctrines in the Philippine Army that only allows Artillery units to operate howitzers or mortars from 105mm caliber and up. MaxDefense was informed that the Philippine Army is already in the process of revising this to allow the MID to have 120mm mortars as well.

Like the RCWS-equipped units, the 5 M113A2 Self Propelled Mortars will also have the Elbit Combat NG battlefield management system,

5 Cardom-equipped M113 Mortar Carriers can equip a single Self Propelled Mortar battery, and will be used to train the Mechanized Infantry Division on the usage of self-propelled mortar carriers as the Philippine Army plans to acquire more units in the near future (to be discussed in future blogs).

More of the Cardom system can be seen in the video below. While the video mostly show the 120mm variant, the 81mm variant to be delivered by Elbit differs only on the mortar size being used. Everything else, from the

Delivery:

Based on information provided by our sources, and information gathered from other means, it appears that Elbit intends to deliver the completed vehicles in batches and is dependent on the facility's availability and the availability of people involved in the upgrade project.

The first batch of around 19 completed upgraded vehicles will be delivered by around February 2019. The 2 other batches will be delivered before mid-2019, although MaxDefense would rather not mention the breakdown of the said batches and the exact month of succeeding deliveries until a few months from then.

By the time all 49 upgraded M113A2s are delivered to the Philippine Army's Mechanized Infantry Division, it is expected that the next 2 projects to upgrade another batch of M113s are expected to be ready to proceed as well, especially that Pres. Duterte has finally approved the Horizon 2 Priority Projects. These 2 projects will be discussed by MaxDefense is another blog entry, and will probably be among the first projects of the Philippine Army to proceed under the recently approved Priority Projects of Horizon 2 phase.




Summary:

Firepower Upgrade of EDA M113s
* Lot 1 - Supply and Installation of 12.7mm RCWS (44 nos.)
* Lot 2 - Upgrade to Armored Mortar Carrier (5 nos)

End User: Philippine Army (Mechanized Infantry DIvision);
Modernization Phase: RA 10349 Revised AFP Modernization Program HORIZON 1 (2nd List);
ABC: Php1,051,650,000.00;
SARO Release: SARO-BMB-D-17-0022354, released 29 November 2017;
Winning Proponent: Elbit Systems Land & C4I (Israel) through Government-to-Government transaction between the Israeli and Philippine governments;
Contract Price: Php1,051,650,000.00;
First post by MaxDefense: 31 July 2017




MaxDefense will provide updates on this project, including updates in our Facebook page and in this blog entry. It is expected that this project will be complete by mid-2019, so we have 1 year more to wait until the completion of this project, if everything goes according to their program and plans.

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PTDI Finally Delivers 2 NC-212i Aircraft to the Philippine Air Force

Indonesia's PT Dirgantara Indonesia (PTDI) has finally started the delivery of two (2) NC-212i for the the Philippine Air Force.

MaxDefense contributors confirmed the departure of the said aircraft, which was later corroborated by sources close to people working with PTDI.

PT Dirgantara Indonesia won a public tender to supply the Philippine Air Force with a light tactical aircraft under the PAF's Light Lift Fixed Wing Aircraft which was tendered as early as 2013. Several tenders were attempted as bidding failures plagued the project until PT Dirgantara Indonesia won the last attempt, and was awarded the contract to deliver two (2) NC-212i aircraft the 1st quarter of 2014.

The project was part of the original AFP Modernization Program mandated by Republic Act 7898 made in 1995. Although it was part of the old modernization program, it was only implemented and funded during the term of Pres. Benigno Aquino III when the Revised AFP Modernization Program was already approved.

One of the NC-212i aircraft, as it departs for Clark Airbase today 08 June 2018.
Photo sourced from PTDI.

The aircraft were supposed to be delivered by late 2015 as per the contract schedule. But PTDI was forced to replace the aircraft's Autopilot System to Genesys Aerosystems due to some issues with the previous autopilot supplier. While PTDI was able to incorporate the new autopilot system from Genesys to the NC-212i aircraft, they were unable to immediately secure the certification needed and required for customers to accept the aircraft. Among those affected were NC-212i orders for the Vietnam People's Air Force, and the Philippine Air Force.

Another issues was that the certification is not PTDI's sole responsibility, but was in coordination with Airbus Military, which is the original design owner of the NC-212i's predecessor, the C-212i Aviocar made by CASA (now part of Airbus Military). It appears that Airbus Military was only able to get the certification for the autopilot system for use on the C-212/ NC-212i a few months ago.

The delays were too long, resulting to PTDI getting slapped with a 1-year blacklisting from joining biddings with Philippine government projects. And yet, after the 1-year blacklisting, the aircraft were still unavailable for delivery for the same autopilot certification issue.

The two NC-212i aircraft for the Philippine Air Force, seen here in PTDI's facility in Indonesia, as it awaits for the certification for the autopilot system to be released. The wait took more than 1 year.
Photo taken from detik.com.

But that is now all in the past.

The two aircraft were delivered to the Philippine Air Force today, 08 June 2018, after being flown from Indonesia to Clark Airbase in Pampanga. It is expected that the PAF will conduct some checks and is expected to formally receive the aircraft and commission them into service with the 220th Airlift Wing within the next few days.

MaxDefense will provide updates on this once the commissioning is made. We thank our sources for the photos on its arrival, and the information of its arrival.

One of the NC-212i flies off to Clark Airbase in Pampanga.
Photo sourced from PTDI.

One of the NC-212i still with temporary Indonesian markings, and was photographed at a PAF airbase on 10 June 2018.
Credits to MaxDefense community member who wish to remain anonymous, for exclusively sharing to us this photo.

Summary:

Light Lift, Fixed Wing Aircraft Acquisition

End User: Philippine Air Force (220th Airlift Wing)
Modernization Phase: RA7898 AFP Modernization Program 3rd Part
ABC: Php270,000,000.00
SARO Release: 2013
Winning Proponent: PT Dirgantara Indonesia (Indonesia)
Contract Price: Php813,000,000.00 through Negotiated Procurement
First post by MaxDefense: 25 September 2013

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