Government approves amendments to contract agreement
The Royal Thai Cabinet has officially approved an amendment to the Yuan Class S26T submarine project, replacing the originally planned German-made MTU396 engines with Chinese-made CHD620 engines. This change was necessitated by German export restrictions that halted the project's progress in 2021.
The contract for the submarine project was signed in 2017 with China Shipbuilding and Offshore International Co (CSOC) of Shanghai. As of now, work on the project is 64% complete, and ten out of eighteen payment instalments worth ฿7.7 billion have been disbursed, leaving ฿5.5 billion still pending.
The CHD620 Chinese diesel engines meet certification and performance standards, and the amendment includes extended warranty, spare parts supply, training, and submarine control simulator support to ensure operational readiness. However, concerns and suspicions of corruption and bribery have surfaced in relation to the project. Critics have questioned the quality and world certification of the CHD620 engine, as well as the seaworthiness and cost-effectiveness of the submarine design compared to German or South Korean alternatives.
Mr Phumtham, the permanent secretary for defense, declined to comment on the Royal Thai Air Force's proposed purchase of Gripen fighter jets or the submarine project, citing it as confidential information. He emphasized that the armed forces are engaged in active operations, and discussions about military equipment are classified government matters.
RAdm Paraj Ratanajaipan, deputy spokesman of the Royal Thai Navy (RTN), expressed gratitude for the cabinet's approval of the changes and confidence that the RTN will employ the newly acquired submarine to defend Thailand's sovereignty, safeguard maritime interests, and assist Thais in all circumstances.
Despite the ongoing controversies, the amendments to the Chinese procurement submarine project have been approved. However, it remains unclear whether the military will request additional armaments in the near future. The Yuan Class S26T submarine project was originally signed as a government-to-government deal between Thailand and China. The CHD620 diesel engine, which will replace the German-made engines, is already in use in submarines operated by other countries.
- The controversies surrounding the Yuan Class S26T submarine project, which includes allegations of corruption and bribery, have shifted the discussion from technical aspects like performance standards to general-news concerns about politics.
- As the amendments to the Chinese submarine project move forward, the focus on the quality and seaworthiness of the Chinese-made CHD620 engines has led to scrutiny over the procurement process and the potential influence of politics in military equipment decisions.
