Royal Thai Navy’s billion-baht battle over subs and frigates
Thailand’s troubled submarine deal and ambitious warship plans are caught in political limbo, with the Pheu Thai-led government showing little urgency in making key defence decisions.
As Prime Minister Paetongtarn Shinawatra prepares for a censure debate later this month, the Royal Thai Navy (RTN)’s long-stalled projects remain up in the air.
The RTN initially accepted China’s offer of an S26T Yuan-class submarine with a Chinese CHD 620 engine and a 200-million-baht compensation package to make up for financial losses and wasted time.
This deal followed failed attempts to secure the originally agreed-upon German-made MTU 396 engine, which was blocked due to an embargo linked to the 1989 Tiananmen Square crackdown.
Despite negotiations held under former Prime Minister Srettha Thavisin, the Defence Ministry, now led by Phumtham Wechayachai, has yet to finalise a decision. Instead of submitting the proposal to the Cabinet, officials have sent it for review by multiple agencies, including the foreign and finance ministries.
“We complied with all requirements and have been waiting nearly a year for a decision. Nobody can explain what’s holding up the process,” a senior naval official stated anonymously.
The submarine saga dates back to a 13.9-billion-baht deal signed in 2017 with China Shipbuilding & Offshore International Co., Ltd (CSOC). Thailand has already paid 7.7 billion baht, 63% of the total cost, despite only 64% of the vessel’s construction being completed.
If the Cabinet approves the latest terms, the submarine’s delivery would be pushed to 2028, with an extended engine warranty and additional training benefits.
Critics, however, argue that the compensation is far too low. Opposition MP Wiroj Lakkhanaadisorn slammed the deal.
“The navy should demand at least a billion baht for the financial loss and delays.”
During a visit to the Sattahip Naval Base on February 24, Wiroj and members of the Military Affairs Committee inspected submarine-ready facilities, including docks, maintenance yards, and torpedo warehouses. Officials admitted that if the submarine project fails, these could be repurposed for other warships like frigates or corvettes.
The RTN is now eyeing a 35-billion-baht proposal for two state-of-the-art 4,000-tonne frigates under an offset policy that would require domestic shipbuilders to assemble at least one vessel in Thailand. These advanced warships would feature stealth technology, anti-drone systems, and cutting-edge radar.
While the opposition supports the frigate project, provided local shipbuilders are involved, budget constraints pose a major challenge. If the RTN proceeds with the submarine, the government may only afford a single frigate, a move that experts warn would be unviable for Thailand’s struggling shipbuilding industry, reported Thai PBS World.
With political uncertainty looming, the fate of the RTN’s billion-baht warship dreams remains in troubled waters.
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