Investments in Philippines depends on Defense Contracts – Naval Group

A Scorpene class Submarine, Illustration from Wikimedia Commons

The French Defense Company Naval Group that is offering their Scorpene class Submarines to the Philippine Navy (PN) said that their planned investments in the Philippines depends on the kind of Contracts they will be able to get from the Philippine Government. 

They also said that they are willing to provide long term financing with advantageous rates up to 100% of the cost of the Project. Aside from Submarines, they are also offering Surface Vessels to the PN which could also be built in the Philippines. 

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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French-made Scorpene Submarine ideal for PH: Lorenzana

First it was Philippine Navy (PN) Flag Officer in Command (FOIC) Vice Adm. Robert Empedrad who said a couple of months ago that the Scorpene class Submarines fits the PN's needs.

Now we have Defense Secretary Delfin Lorenzana saying something similar, so it seems that if the PN is really going to get Subs, it is going to be the Scorpene.

This despite Russia reportedly renewing their offer last October 2019 for Kilo class Submarines to the Philippines.

SOURCE: French-made Scorpene Submarine ideal for PH: Lorenzana

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