Saturday, January 18, 2020

Scorpene class Submarine Acquisition Update – Jan. 18, 2020

Just some new details about the Philippine Navy’s (PN) planned acquisition of Scorpene class Submarines from France thru an interview by the “Business Mirror” news publication of Vice Admiral Robert Empedrad:

* The French Government is willing to provide a Soft Loan to the Philippines for the acquisition with a very low interest rate of only 1% per year.

* Cost for the two Scorpene class Submarines will be Php 70 billion (Usd 1.37 billion), or Php 35 billion (Usd 686 million) each.

* Delivery could be as soon as 2027 (probably for the first Submarine).

The article kept comparing Russia’s Kilo class Submarine to the Scorpene, and if we look at the acquisition objectively, the price quoted for the Scorpenes is a bit high compared to what Vietnam paid for when they bought their Project 636MV Kilo class Submarines from Russia which was only at Usd 500 million each including Armaments and Submarine Infrastructure.

However, it is possible that the French offer might have other considerations also, like the Soft Loan Interest Rate might have been lower and that there may (or may not) be other freebies included in the deal.

Buying from France also means we won’t have to deal with the United States (US) interfering with the transaction thru their Countering America's Adversaries Through Sanctions Act (CAATSA), unlike if we bought from Russia.

French Submarines also will likely be more acceptable than Russian Submarines to pro US factions within the government.

SOURCES:
‘Run silent, run deep’
Russian Subs in Vietnam

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