Sink or spend? Thailand nears decision on submarine deal
Defence minister confirms submarine procurement project to go ahead by next month
Thailand’s long-delayed and controversy-laden submarine deal is finally approaching crunch time — and it’s sink or spend for the Defence Ministry.
Defence Minister Phumtham Wechayachai confirmed that a final decision on the 13.5 billion baht submarine procurement project could be made by the end of this month or in early June. The high-stakes verdict follows consultations with the Royal Thai Navy, as well as Chinese and German officials.
“This issue must be resolved soon. It involves billions of baht already paid and years of planning.”
The deal, inked in 2017 through a government-to-government agreement with China Shipbuilding & Offshore International Co., originally required a German-made diesel engine. However, Germany blocked the export, citing the engine’s classification as a military item prohibited under the EU’s arms embargo on China.
In response, China offered a domestically produced CHD620 engine as a replacement, a move that stalled the project and triggered months of deliberation.
The Royal Thai Navy dispatched a team to China to inspect the engine, and while test results are still being considered, pressure is mounting to make a final call.
According to Phumtham, cancelling the deal outright would mean forfeiting up to 8 billion baht already paid to China. Meanwhile, moving forward with the Chinese-made engine could salvage the investment and make use of infrastructure already in place, including a newly formed submarine squadron, dockyard construction, and trained personnel, reported Bangkok Post.
He stressed that all decisions would be made with full transparency and called on the public to avoid sensationalising the matter.
“Let’s not stir tension or damage international relations.”
Phumtham also held talks with German Defence Minister Boris Pistorius, who reiterated that Germany cannot approve the engine sale due to its obligations as a NATO and EU member.
In a bid to gather more insight, Phumtham consulted Pakistani diplomats, who shared that their Chinese-made submarines are operating effectively, a potential reassurance as Thailand weighs using the alternative engine.
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