Suggests potential progress in Chinese submarine agreement amidst discussions with authorities
Thailand's long-delayed submarine project, initially planned with German engines, will now proceed with amended terms following a decision by the Cabinet to switch to Chinese CHD620 engines[1][2][3][5]. The change comes after Germany refused to supply the engines due to arms embargoes on China[2][4].
The project, which has already seen 64% completion and cost Thailand around 7.7 billion baht (~$238 million), will now extend its completion timeline by approximately 1,200 days, aiming for the first submarine delivery in about three years[1][3][5].
Deputy Prime Minister and Defence Minister Phumtham Wechayachai, who has faced a dilemma over the engine issue, has consulted various parties, including the Office of the Council of State, the Pakistani Ambassador to Thailand, and even the German Defence Minister[1][2][3].
Phumtham's concerns about explaining his decision to the public and avoiding sensationalisation have been addressed by the Chinese CHD620 engine's compatibility and performance[3]. The engine meets the required standards, replacing the German engine without further expected delays[3].
The amendment also includes extended warranty, spare parts, training, and submarine control simulator support to enhance operational readiness[3]. Preparations for submarine crew training and port facilities are ongoing to align with the updated delivery schedule[1].
However, if the project is cancelled due to the inability to acquire a German engine, Thailand would lose around 7 billion baht, which is 80% of the total cost already paid[2]. The Chinese government is unwilling to refund the money if the deal for the submarine is cancelled, as no contract breach has occurred[2].
Phumtham now faces a crucial decision: to cancel or proceed with the submarine project[6]. He plans to submit his final decision for the Cabinet's approval after thorough consideration[7]. The decision is expected by late May or early June[7].
References:
- Bangkok Post
- Reuters
- Khaosod English
- SCMP
- Nation Thailand
- Voice of America
- Bloomberg
The proposed switch in engines for Thailand's submarine project, initially planned with German engines, is set to move forward with Chinese CHD620 engines, despite previous refusals from Germany due to arms embargoes on China. This decision follows extensive consultations by Defense Minister Phumtham Wechayachai with various parties, including the Chinese engine's compatibility and performance addressing his concerns about explaining the decision to the public and avoiding sensationalization. However, the amendment may extend the project completion timeline and could potentially result in loss of funds if the project is ultimately cancelled, raising the question of whether Phumtham should proceed or cancel the submarine project, with a final decision expected by late May or early June. These developments involve policy-and-legislation in Thailand and are closely linked to the nation's general news and business sectors.
