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| A BrahMos Missile and its Launch Container, Photo from Wikimedia Commons |
Defense Secretary Delfin Lorenzana stated another update a couple of Days ago about the Philippines plan to acquire the PJ-10 BrahMos Missile from India, more details were given this time than the last time he was quoted by the Press about the issue (around November 24, 2020):
* He said that the Department of National Defense (DND) was really eager to buy the Missile, but that they lost the Funds allocated for it to the fight against the Corona Virus Disease 2019 (Covid-19) Pandemic.
* The acquisition of the Missile was already in the advanced stage of Procurement before the Covid-19 Pandemic hit around March 2020.
* He confirmed that India is indeed offering a Soft Loan for the Missiles, but that President Rodrigo Duterte is having second thoughts about using the Loan since the Government is already taking a lot of Loans already to fight the Covid-19 Pandemic.
* Duterte also reportedly said he does not want to take more Loans anymore as the next Administration might criticize his Administration.
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Based on this, it looks like the Government will not be accepting or is politely turning down India’s offer of a Loan for the Missiles.
But there is no mention of a cancellation of the deal yet, it seems to be still a go but that the Philippines will be using its own Money to buy them.
As for the Funds, based on previous Reports, Php 9.4 billion allocated for the Modernization of the Armed Forces of the Philippines (AFP) that went unspent in 2019 was reallocated in 2020 to fight Covid-19.
Another Php 8 billion allocated for the AFP Modernization this Year (2020) was reallocated to fight Covid-19, but this has been returned to the AFP Modernization’s Budget in 2021.
- Php 25 billion annual allocation for the AFP Modernization
- Php 8 billion returned as stated above
- Php 5 billion added under “Unprogrammed Funds”
- Php 2 billion from the General Appropriations Bill for the downpayment of two Heavy Lift Transport Aircraft
- Php 18.37 billion from the Bases Conversion and Development Authority (BCDA) as the AFP’s share in the sale of Military Base Lands
I don’t know most of the Items that the AFP will spend on for that Php 58 billion, I am thinking that somewhere in there is the Funds for the BrahMos. However, Sec. Lorenzana did not say it so outright, he just said that they lost the Funds for it.
Anyway, since there is no mention of any cancellation of the deal yet, then I think it is still on, just a question of when. Hopefully in some time 2021, maybe even 2022.
* AFP’s Missile System will have to wait — Lorenzana {Archived Link}
* Philippines still waiting for Funds for the Land and possibly Air Versions of the BrahMos {Archived Link}
* Php 9.4 billion allocated for the AFP Modernization in 2019 went unspent, was reallocated to fight Covid-19 {Archived Link}
* DND plans to spend Php 58 billion for the AFP Modernization in 2021 {Archived Link}
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