Philippines postpones several defense acquisition projects due to COVID-19

The Damen 10514 corvette  which was offered by Damen to the PN'S corvette project. Photo c/o Damen.

The Philippines’ Department of National Defense (DND) confirmed in a statement from Defense Secretary Delfin Lorenzana that several military acquisition projects for the Armed Forces of the Philippines (AFP) scheduled for Fiscal Year 2020 will be postponed by at least 1 year.

This is due to the diversion of funds originally allocated to 15 acquisition projects for the Philippine Army (PA), Philippine Navy (PN), and Philippine Air Force (PAF).

The DND returned Php9.4 billion (US$188 million) worth of funds from the AFP Modernization Program, as well as Php9.9 billion (US$US$198 million) from capital outlay, maintenance, and operating expenses.

Among those the DND confirmed to be delayed are the PA’s C4ISTAR System, Combat Engineering equipment, and Light Tanks, the PAF’s Medium Lift Aircraft, and the PN’s Landing Platform Docks, all of which were allocated an initial funding under FY2020.

Acquisitions projects that were already ordered and have contracts signed with suppliers were allowed to proceed.

In an earlier statement, the DND also confirmed that they are delaying the acquisition of 2 new Guided Missile Corvettes for the PN worth Php28 billion (US$560 million), and is rescheduled to the next 5-year modernization phase stating 2023, as the effects of COVID-19 pandemic to the Philippine economy will affect its ability to pay for them.

According to Philippine defense page MaxDefense Philippines, South Korea's Hyundai Heavy Industries (HHI) is leading the selection, although offerings from other shipbuilders like the Netherlands' Damen, Turkey's ASFAT, France's Naval Group, and India's Goa Shipbuilding are being considered.


[1] CNN Philippines
[2] Philippine News Agency
[3] Philippine Defense Resource