Thai Cabinet reviews submarine procurement contract extension

A submarine procurement contract extension is under review by the Thai Cabinet, following advice from the Office of the Attorney General (OAG). This came as a response to the Royal Thai Navy’s (RTN) inquiries concerning the programme.

The OAG highlighted the requirement for a 1,217-day contract extension to undergo a Cabinet review due to the government-to-government nature of the deal.

The change to the submarine engine, however, was deemed a technical issue, the evaluation of which rests with the RTN. The 13.5-billion baht (US$ 385,279,605) submarine programme experienced a setback when China failed to secure a German-made engine for the Yuan-class S26T submarine, ordered by the Thai navy.

This was due to regulatory restrictions that prevented German engines from being utilised in Chinese military equipment, reported Bangkok Post.

China offered a CHD620 engine to replace the MTU396, a solution that seems to be acceptable to the navy. Even so, the Pheu Thai-led government appears to lean towards swapping the submarine for a frigate, a deal that may increase costs by one billion baht (US$28,527,830).

If the engine change is approved, the procurement process will require an additional 40 months to be completed. The construction, already delayed due to the Covid-19 pandemic, is currently on pause due to the engine issue.

Sutin Klungsang, the Defence Minister, declined to discuss the OAG’s responses regarding the submarine purchase plan yesterday, January 10, stating he hadn’t fully viewed the document yet. He affirmed that the final decision lies with the Cabinet.

In related news, Thailand Prime Minister Srettha Thavisin is set for talks with the Chinese government regarding the delay in the delivery of a commissioned Chinese submarine to Thailand. The S26T Yuan-class model was initially planned to reach Thailand in September last year. However, due to the ongoing pandemic, the delivery has been postponed to April this year. Read more about the submarine snag.