Thai Cabinet to decide on Chinese-built submarine purchase

The Thai Cabinet is set to make a final verdict regarding the purchase of a Chinese-built submarine, stated Defence Minister Sutin Klungsang. The decision comes after the Office of the Attorney-General (OAG) approved the use of a Chinese engine for the submarine and recommended extending the contract. Sutin is expected to discuss the matter further with Royal Thai Navy (RTN) Chief Adm Adung Phan-iam upon his return from abroad today.

The submarine project encountered a major hurdle when Germany declined to provide a diesel engine for the vessel, citing a law that prevents the use of German-made engines in foreign-made weaponry. Consequently, China suggested a locally-made engine as a solution; however, the RTN refused this offer.

To resolve the standstill, the RTN proposed to purchase a frigate from China. However, this plan was postponed due to an additional expense of 1 billion baht linked to the vessel, reported Bangkok Post.

Sutin revealed that the Cabinet’s decision would hinge on three crucial elements: the operational necessities of the navy, safeguarding national interests, and preventing any negative impact on diplomatic relations between China and Thailand. Following the OAG’s review, the RTN sought the views of various governmental bodies, including the Council of State, the National Economic and Social Development Board, the Budget Bureau, the Volunteer Defence Corps, the State Audit Office, and the ministries of Foreign Affairs and Finance.

The RTN is also contemplating extending the contract by an additional 1,217 days to gain ownership of the submarine after the original agreement expired on December 30 last year. The RTN chief or his representative is set to sign the contract, which would extend the debt obligation from 2017 to 2027.

In related news, the Thai Cabinet reviewed a submarine procurement contract extension advised by the Office of the Attorney General. Delving into technical challenges, the setback in acquiring a German-made engine and potential cost implications, shedding light on the government’s inclination towards swapping the submarine for a frigate. Read more about the submarine contract review.