Thursday, December 26, 2013

Decision to acquire South Korean F/A-50 still on go - Gazmin

From the Philippine News Agency (Dec 26): Decision to acquire South Korean F/A-50 still on go - Gazmin

Department of National Defense (DND) Secretary Voltaire Gazmin announced that the decision to acquire South Korea's F/A-50 jet aircraft is still on go.

He made this statement after noting that the DND has submitted its report to the Office of the President which recommended approval of the Korean Aerospace Industries (KAI) request that the Philippines pay 52 percent of the P18.9 billion price of the 12 F/A-50 aircraft which the country is planning to acquire as its interim fighter planes.

Gazmin also said that should the Office of the President go ahead with their recommendation, along with the so-called progress billing, the planes will be delivered by June 2015.

The DND chief added that both parties have reached a compromise on the delivery of spare parts in 60 days.

DND undersecretary for finance, modernization, installations and munitions Fernando Manalo earlier admitted that some major issues need resolving before the country can push through with its acquisition of the F/A-50 jet aircraft.

He added that the issues are now in the process of negotiations.

These include the turnaround time for spare parts which the Philippines wants 30 to 45 days but which the Korea Aerospace Industries is insisting on 180 days, issue on advance payment with the DND is insisting only on 15 percent but KAI wants 52 percent.

The DND official stressed that the Philippine decision for a less turnaround time for the spare parts is aimed at keeping the jet aircraft flyable at all times.

Manalo said that the insistence of South Korea of a 52 percent down payment is a major difficulty as the AFP Modernization Act only allows 15 percents payment with the balance being given on the subsequent deliveries.

He added that they will elevate this issue to the Office of the President to determine whether they can give more than the mandated 15 percent to KAI

"We can recommend to the President to grant their request as the money will be used to invest (in the production line) for the aircraft," he added.

The DND earlier has allocated over P18.9-billion to acquire 12 brand-new F/A-50 jet aircraft from KAI.

http://www.pna.gov.ph/index.php?idn=1&sid=&nid=1&rid=599947

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