Chinese submarine engine procurement remains in limbo

TUESDAY, DECEMBER 31, 2024

Defence Minister says he is however confident that the deal will be finalised within the next six months

Oversight concerns are delaying the signing of the long-delayed submarine procurement project with China, Defence Minister Phumtham Wechayachai said on Tuesday. He added that while the deal has yet to be approved, he was confident that the details would be finalised within six months.

Phumtham stressed that the deal should first be reviewed thoroughly, saying that he and navy chief Adm Jirapol Wongwit would be responsible if the deal were to adversely impact on Thailand.

“I have told the Royal Thai Navy and Chinese ambassador that I am not a person who lets things drag on,” he said, adding that he had failed to close that deal by December this year, as using a Chinese-made engine instead of German one is an important issue.

Phumtham said he has discussed the sanctions on selling submarine engines to China with German military officials, adding that the officials had pledged to respond. He would be following up with a formal letter to the military officials and would await Germany’s response.

Referring to claims that Chinese submarines could pose a risk to life given that they have yet to be tested in water,  he said China had sold eight submarines to Pakistan with engines similar to the ones proposed by China for Thai use.

“I have asked the Pakistani ambassador to deploy those submarines quickly and evaluate if submarines are safe after using them for three to four months, so I am clear on whether Chinese-made engines have a similar performance to those made in Germany,” he said.

Chinese submarine engine procurement remains in limbo

Phumtham noted if the project is abandoned, the 8 billion baht already spent on the project will be lost, along with 80% of the payment for the 13-billion-baht submarine and 80% of progress in the construction of a pier and personnel training.

The project, initially agreed upon in 2017, has faced several hurdles, including engine-related controversies and international sanctions.

The submarine deal, valued at 13.5 billion baht, was signed under a government-to-government agreement with China Shipbuilding & Offshore International.

Construction was reportedly 50% complete when it was delayed due to Covid-19. It was later put on hold again when the original plan to use German-made diesel engines was abandoned as Germany declined to supply the engines to China because they were classified as military/defence items.