Minor Sustainment Projects of the Philippine Navy under the AFPMP Capability Upgrade Program

Due to the numerous minor projects involved in the AFP Modernization Program's Capability Upgrade Program of the Philippine Navy and of all other branch services, MaxDefense Philippines decided to combine them to resources pages based on their classification according to Department of National Defense (DND) official documents.

In this case, we focus on Minor Sustainment Projects under the AFPMP Capability Upgrade Program of the Philippine Navy, which are projects classified under Sustainment Projects that are less than Php100 million in value.

The project names would still be individually listed in the MaxDefense Philippines' AFP & PCG Modernization Resource Portals and on Philippine Defense Resource's List of Modernization Projects, but will be linked into each of the grouped resource pages of each branch service. MaxDefense will follow numbering based on its listing from DND documents.

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SUSTAINMENT PROJECTS OF THE PHILIPPINE NAVY UNDER THE AFPMP CAPABILITY UPGRADE PROGRAM:

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4. BN Islander Upgrade Phase 1 Project

Overview:

This project was meant to conduct upgrade works on one of the Philippine Navy's BN-2 Islander light aircraft.

It was decided to be procured via Public Bidding, with 5 bidders participating when the project was opened in 2004. It was later on awarded to Australia's Hawker Pacific Corp., which has experience in conducting works on the BN-2 Islander.

Parts for the upgrade works were delivered to the Philippine Navy in June 2004, although the upgrade works was completed only by September 2004. The project was accepted by the Philippine Navy on 08 October 2004.

One of the PN-NAG's BN-2 Islander light aircraft. Photo for reference only. Credits to original source of photo.

Project Summary:

BN Islander Upgrade Phase 1 Project:

Note: Edited as of 20 June 2020.

* End User: Philippine Navy (Naval Air Group)

* Quantity: 1 aircraft

* Modernization Phase: Capability Upgrade Program of the AFP Modernization Program (RA 7898)

* Project ABC: Php25,000,000.00

* Acquisition Mode: Public Bidding

* Source of Funding: GAA Funds through AFP Modernization Program Trust Fund

* Winning Proponent: Hawker Pacific Australia

* Product for Delivery: Upgrade works for Britten Norman BN-2 Islander aircraft

* Contract Price: Php24,683,034.00

* Residual Difference (Savings): PhpPhp317,000.00

* Status: Works completed as of October 2004. PROJECT COMPLETED.

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7. Jacinto-class Patrol Vessel Generators Acquisition Project

Overview:

The project was meant to allow the replacement of 9 diesel generators on the Jacinto-class patrol vessels of the Philippine Navy. Each ship has 3 diesel power generators.

Back then, the ships were still using the original diesel generators and have reached the end of their service lives.

Direct contracting was made for the project, which was done with Propmech Corporation which was a contractor specializing in Caterpillar diesel engines and generators for marine application.

A contract was signed by the Armed Forces of the Philippines (AFP) and Propmech Corp. on 25 October 2004.

Propmech delivered the Caterpillar 3406C diesel generators with a maximum output of 365 bhp (347 kilowatts) each, and these were completed and accepted by the Philippine Navy by 20 June 2005.

One of the Jacinto-class patrol vessels of the Philippine Navy, the BRP Artemio Ricarte (PS-37). Photo from US Navy through DVIDS.

Project Summary:

Jacinto-class Patrol Vessel Generators Acquisition Project:

Note: Edited as of 20 June 2020.

* End User: Philippine Navy (Philippine Fleet)

* Quantity: 9 generators, 3 for each ship of the class

* Modernization Phase: Capability Upgrade Program of the AFP Modernization Program (RA 7898)

* Project ABC: Php30,000,000.00

* Acquisition Mode: Direct Negotiation

* Source of Funding: GAA Funds through AFP Modernization Program Trust Fund

* Winning Proponent: Propmech Corporation

* Product for Delivery: Caterpillar diesel generators

* Contract Price: Php29,865,000.00

* Residual Difference (Savings): Php135,000.00

* Status: Works completed as of June 2005. PROJECT COMPLETED.

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17. BN-2 Islander Upgrade Phase 2

Overview:

With the success of the initial BN-2 Islander Upgrade Phase 1 project which actually was a test to see if it is viable to upgrade their existing fleet of BN-2 Islander light aircraft, the Philippine Navy decided to conduct another upgrade program, this time involving three (3) aircraft.

Originally the plan was to negotiate the project with Hawker Pacific, but on June 2005, the DND decided to shift the procurement process to public bidding, and the Philippine Navy made changes in the specifications. This move dropped the number of aircraft to be upgraded to just two (2), as the latest specs are more expensive but more comprehensive than the original plan.

Included in the upgrade plan are the rehabilitation of aircraft, upgrade of avionics including installation of partial glass cockpit, and installation of a Honeywell weather radar and surface search radar system, which allows the aircraft to be used for short-range maritime patrol.

The Invitation to Bid was released on 02 December 2005, with the Submission of Bid Envelopes (SOBE) scheduled on 01 March 2006.

Out of seven bidders, Hawker Pacific was declared the winning bidder with a bid worth Php71,594,650.00. Their experience in doing the BN-2 Islander Upgrade Phase 1 was also something that the DND and PN may have considered.

Both aircraft have been delivered to the Philippine Navy and the project considered completed as of May 2008.

Photo credits to DND Annual Report 2008.

Project Summary:

BN-2 Islander Upgrade Phase 2 Project:

Note: Edited as of 20 June 2020.

* End User: Philippine Navy (Naval Air Group)

* Quantity: 2 aircraft

* Modernization Phase: Capability Upgrade Program of the AFP Modernization Program (RA 7898)

* Project ABC: Php75,000,000.00

* Acquisition Mode: Public Bidding

* Source of Funding: GAA Funds through AFP Modernization Program Trust Fund

* Winning Proponent: Hawker Pacific Australia

* Product for Delivery: Upgrade works for Britten Norman BN-2 Islander aircraft

* Contract Price: Php72,594,650.00

* Residual Difference (Savings): Php2,405,350.00

* Status: Works completed as of May 2008. PROJECT COMPLETED.

A Philippine Navy BN-2 Islander light aircraft. Photo credits to DRP forum.

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19. 76mm Ammunition Acquisition Project

Overview:

Due to cancellation of the BO-105 Helicopter Upgrade Phases 1 and 2 (see discussions below under "Cancelled Sustainment Projects"), the Philippine Navy re-aligned its budget to acquire stocks of 76x663mm naval gun ammunition for the Jacinto-class Patrol Vessels.

This became the 76mm Ammunition Acquisition Project, which was approved for implementation by Pres. Gloria Macapagal-Arroyo on 07 November 2005.

MaxDefense failed to get full details of the project, especially on who won to supply the ammunition, although we were able to get confirmation that the project was implemented via Public Bidding, with a budget of Php62,090,000.00.

It also appears that the project was delayed by several years, considering the project was only completed on January 2011.

76mm gun ammunition as seen on a magazine of an OTO Melara Compact naval gun. Photo credited to Associated Press.

Project Summary:

76mm Ammunition Acquisition Project:

Note: Edited as of 21 June 2020.

* End User: Philippine Navy (Philippine Fleet)

* Quantity: 1 lot, unspecified number of rounds

* Modernization Phase: Capability Upgrade Program of the AFP Modernization Program (RA 7898)

* Project ABC: Php62,090,000.00

* Acquisition Mode: Direct Negotiation

* Source of Funding: GAA Funds through AFP Modernization Program Trust Fund

* Winning Proponent: TBC

* Product for Delivery: 76mm HE Rounds

* Contract Price: Php46,898,750.00

* Residual Difference (Savings): Php15,191,250.00

* Status: Works completed as of January 2011. PROJECT COMPLETED.

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55. Naval Helicopter Annual Operating Cost

Overview:

With the acquisition of new AgustaWestland AW109E Power naval helicopters, the Philippine Navy failed to secure funding to allow for the increased operational tempo of the Naval Air Group using the new helicopters, creating a shortfall of funding.

With nowhere to secure additional funding, the DND and PN decided to credit the annual operating cost of the AW109E helicopters from the AFP Modernization Program.

A fund requirement worth Php11,932,000.00 was raised to allow the helicopters' operation in 2016, and was immediately released.

These mistakes were later on noted as there were improvements in future acquisitions in terms of allocation of sustainment funding for new assets.

One of the PN's AW109E naval helicopter during tests prior to delivery. Photo from AgustaWestland through Helis.com.

Project Summary:

Naval Helicopter Annual Operating Cost:

Note: Edited as of 21 June 2020.

* End User: Philippine Navy (Naval Air Group)

* Quantity: 1 lot

* Modernization Phase: Capability Upgrade Program of the AFP Modernization Program (RA 7898)

* Project ABC: Php11,932,000.00

* Acquisition Mode: various

* Source of Funding: GAA Funds through AFP Modernization Program Trust Fund

* Winning Proponent: various

* Product for Delivery: various

* Contract Price: Php11,932,000.00

* Residual Difference (Savings): Php0.00

* Status: Works completed as of December 2016. PROJECT COMPLETED.

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CANCELLED SUSTAINMENT PROJECTS:

These projects did not reach pre-procurement stages and were cancelled during planning process due to a variety of reasons.

1. BO-105 Helicopter Upgrade Phase 1 Project:

The plan was to upgrade one of the Philippine Navy's MBB BO-105 helicopters as it reaches advanced age and wear, with most of the BO-105 helicopters delivered to the Philippine Navy were manufactured in the 1970s. MaxDefense was unable to get complete details of the proposal including the budget and number of helicopters involved, especially since it was cancelled early on. MaxDefense believes the budget to be around Php25 million.

The project was supposed to have started in 2005, if it pushed through. Due to cancellation, its proposed budget which was part of an overall budget of Php1,569,590,000.00 was re-aligned to other projects


2. BO-105 Helicopter Upgrade Phase 2 Project:

Similar to the Phase 1 project, it involves the upgrade of another batch of two units of MBB BO-105 naval helicopters of the Naval Air Group. The same reason was made on its cancellation as the Phase 1 project. MaxDefense believes the proposed budget for this project was around Php62 million.

The plan was for it to push through in 2006 or 2007 if it did not met the chopping board. Its funds, also part of the Php1,569,590,000.00 fund, was re-aligned to other projects.

One of the PN's BO-105 helicopter. Credits to original source.

3. Landing Ship Tank Upgrade Project:

The plan was to upgrade one of the Philippine Navy's World War 2-era ex-US Navy Landing Ship Tank considering the ships were built in the late 1940s and already reached 60 years by 2005. MaxDefense believes the ship planned for upgrade and repair was the BRP Kalinga Apayao (LT-516), which was already reaching end of its lifespan in 2005. With the project cancelled, the Philippine Navy reduced the use of the ship, and was left in Naval Base Cavite until they decided to decommission it in 2010.

Despite the budget being around Php200 million, we included this in this resource page as it was not implemented anyway.

The project was found uneconomical due to the ship's advanced age, and this also became the basis for not having any upgrade project for any of the Philippine Navy's Landing Ship Tanks from 2005 up to 2020, as it was decided to just retire them once they are unable to repair them anymore.

The proposed budget was re-aligned to other projects as part of the Php1,569,590,000.00 fund for 2005-2006, and MaxDefense believes that the Landing Craft Utility (LCU) Acquisition Project benefited from this.

The BRP Kalinga Apayao (LT-516), which MaxDefense believes was supposed to the ship to be repaired and upgraded under the cancelled LST Upgrade Project. Credits to Ray Smith / Shipspotting.com.

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First edit and release: 20 June 2020
Copyright MaxDefense Philippines / Philippine Defense Resource