Government approves modifications to subcontract agreement
The Thai cabinet has given the green light to amendments in the Chinese procurement submarine project, replacing the originally specified German MTU396 engines with the Chinese CHD620 diesel engine.
The Yuan Class S26T submarine project, a government-to-government deal between Thailand and China Shipbuilding & Offshore International Co (CSOC), was signed in 2017. The switch to Chinese-made engines occurred due to export restrictions imposed by Germany on the MTU engines, as the military nature of the deal and concerns about end-use raised concerns. This restriction caused a halt in the project since 2021, preventing the procurement of the German engines.
The amended contract, now certified by Lloyd's Register, a global maritime classification society, includes the switch to Chinese engines and a 1,217-day extension to the construction timeline. As a result, work on the project, which was 64% complete before the halt, can resume. Out of the total 18 payment installments worth 13.4 billion baht, 10 worth 7.7 billion baht have already been disbursed.
RAdm Paraj Ratanajaipan, deputy spokesman of the Royal Thai Navy (RTN), expressed gratitude for the cabinet's approval, stating it would enable the navy to continue with the procurement and bolster its capabilities. The new engine will be employed by the RTN to defend the country's sovereignty, safeguard maritime interests, and assist Thais in all circumstances.
However, Mr. Phumtham, the permanent secretary for defense, declined to offer any further comment on the proposed purchase of Gripen fighter jets by the Royal Thai Air Force, and he would not speak about any military equipment.
The remaining 40% of the contract, worth 5.5 billion baht, is still pending. The revised agreement for the Yuan Class S26T submarine project will allow for added benefits like extended warranty, spare parts supply, training, and submarine control simulator support to be included in the amended contract.
Despite the progress made in the submarine project, the details of the RTN's plans for requesting additional armaments in the near future remain unresolved, as the cabinet has only been briefed on the matter of the RTN's submarine acquisition, and further discussions are ongoing.
The revised Yuan Class S26T submarine project, including the switch to Chinese engines, will aid the Royal Thai Navy (RTN) in continuing with the procurement and strengthening its capabilities, as the new engine will be used to defend the country's sovereignty, safeguard maritime interests, and assist Thais in all circumstances.
The remaining 40% of the contract, worth 5.5 billion baht, is still pending, and the revised agreement may include additional benefits like extended warranty, spare parts supply, training, and submarine control simulator support.
