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
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