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Friday, November 13, 2020

Assorted Rubber Boats Acquisition Projects (2019) of the Philippine Coast Guard

 As part of its capability improvement for Fiscal Year 2019, the Philippine Coast Guard implemented 2 projects related to the acquisition of Rubber Boats for different purposes.

The first one, the Commando Rubber Boat with Trailer for CG Special Operations Force Acquisition Project, called for the purchase of 41 new rubber boats with a project budget of Php58,117,500.00. 

The second, the Rubber Boats for PCG Vessels and CG Districts Acquisition Project, requires the delivery of 43 rubber boats with a budget of Php49,665,500.00.

Photo from Zodiac Milpro.

Project Summaries:

Commando Rubber Boats with Trailers Acquisition Project

Note: Edited as of 20 March 2021.


* End User: Philippine Coast Guard (Special Operations Force)

* Quantity: 41 Rubber Boats with Outboard Motors and Trailers


* Project ABC: Php58,117,500.00
     
Acquisition Mode: Public Bidding

* Source of Funding: PCG GAA 2019


* Winning Proponent: Scan Marine Philippines

Product for Delivery: 
  * 41 units Zodiac Milpro Futura Commando FC 470 rubber boats with oatboard motors and trailers

* Contract Price: Php52,306,258.00

* Residual Amount: Php5,811,242.00

* MaxDefense Searching Hashtag: #PCGCommandoRubberBoatAcquisition

* Status: NOA released in favor of Scan Marine Inc. on 20 December 2019, Contract signed and NTP released on 21 January 2020. Delivery of boats and trailers was made on November 2020, although the outboard motors will be delivered separately. Outboard motors were delivered as of January 2021. PROJECT COMPLETED.

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Rubber Boats for PCG Vessels and CG Districts Acquisition Project

Note: Edited as of 13 November 2020.

* End User: Philippine Coast Guard

* Quantity: 43 Rubber Boats with Outboard Motors and Trailers


* Project ABC: Php49,665,000.00
     
Acquisition Mode: Public Bidding

* Source of Funding: PCG GAA 2019


* Winning Proponent: Scan Marine Philippines

Product for Delivery: 
  * 43 units Zodiac Milpro Grand Raid rubber boats with oatboard motors and trailers

* Contract Price: Php42,215,250.00

* Residual Amount: Php7,449,750.00

* MaxDefense Searching Hashtag: #PCGRubberBoatAcquisition

* Status: NOA released in favor of Scan Marine Inc. on 20 December 2019, Contract signed and NTP released on 21 January 2020. Delivery of boats and trailers still pending as of 10 November 2020.

Overview:

The Commando Rubber Boat with Trailers for CGSOF is to provide assault and utility rubber boats for the Special Operations Force of the PCG. These would be used for insertion and extraction of small units, patrols along coastal areas, counter terrorism missions, and other combat and non-combat purposes.

These are expected to be military-type rubber boats that are more durable than standard civilian or law enforcement rubber boats.

Meanwhile, the Rubber Boats for PCG Vessels and CG Districts are different from those required by the CGSOF, in terms of size and design. The boats are civilian spec but heavy duty and will be used for general purposes like rescue, HADR and maritime law enforcement. These are the reason why the budget for it is smaller despite the higher quantity than the other rubber boat acquisition project.

Rubber boats are needed by the different Coast Guard districts to support coastal maritime operations, and can also be deployed during disasters and rescue operations. Meanwhile rubber boats are also needed by PCG vessels for ship boarding and support.

Both projects require an outboard motor to be included.

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U P D A T E S:
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13 November 2020:

MaxDefense Philippines received confirmation from sources that the Philippine Coast Guard has received the delivery of 41 new Zodiac MilPro Futura Commando rubber boats which were delivered by Scan Marine Inc. for the Commando Rubber Boats and Trailers Acquisition Project.

All 41 boats were said to have been delivered, although the oatboard motors were not yet included in the delivery and will be made separately.

Due to the floods in the aftermath of Typhoon Ulysses (Vamco), the PCG has prepared the boats for use on Humanitarian Assistance and Disaster Relief (HADR) operations, even without the oatboard motors, and will instead be used as rowboats on flooded areas.

No word has been made yet if the Rubber Boats for PCG Vessels and CG Districts have been delivered, also by Scan Marine Inc.

Photos shared exclusively to MaxDefense Philippines (and by extension to Philippine Defense Resource) by a source.



New Zodiac Milpro Futura Commando rubber boats being prepared for deployment in the aftermath of Typhoon Ulysses. Photo exclusively shared to MaxDefense Philippines.

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20 March 2021:

Our parent page MaxDefense Philippines confirmed that the Philippine Coast Guard already received delivery of the outboard engines for all 41 Zodiac MilPro Futura Commando rubber boats a few months ago. No specific date was provided although it is safe to say that they were all delivered before the end of January 2021.

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With the Scan Marine delivering all 41 Zodiac MilPro Futura Commando rubber boats and associated outboard motors and accessories as of January 2021, already delivered and formally inducted with the Philippine Army, MaxDefense and Philippine Defense Resource officially consider the Commando Rubber Boats with Trailers Acquisition Project of the Philippine Army as COMPLETED.

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First posted and released on 13 November 2020
Copyright MaxDefense Philippines / Philippine Defense Resource



Sunday, November 8, 2020

Long Range Patrol Aircraft Acquisition Project of the Philippine Air Force

The Philippine Air Force has embarked on the acquisition of Maritime Patrol Aircraft under the Long Range Patrol Aircraft (LRPA) Acquisition Project, which is a Horizon 1 phase priority project under the Revised Armed Forces of the Philippines Modernization Program (RAFPMP).

An initial requirement for 2 aircraft were planned to be acquired under this project, with an Approved Budget of Contract (ABC) worth Php5,976,000,000.00.

The two leading contenders for the LRPA Project: the Leonardo ATR-72MP / P-72A, and the Airbus P-295MPA / ASW. Photo credits to original sources.


Project Summary:

Long Range Patrol Aircraft (LRPA) Acquisition Project:

Note: Edited as of 22 April 2023.


* End User: Philippine Air Force (300th Air Intelligence and Security Wing)

* Quantity: 2 nos. maritime patrol aircraft

* Modernization Phase: Horizon 1 Priority Projects of RAFPMP

* Project ABC: Php5,976,000,000.00

* Acquisition Mode: To be confirmed, awaiting ADM from DND. Most likely G2G with Israeli Ministry of Defense.

* Source of Funding: AFP Modernization Trust Fund, to be paid via Multi-Year Contractual Allocation (MYCA) through General Appropriations Act (GAA) starting FY2021.

* SARO Release:
  - SARO-BMB-D-22-0006751 dated 12 August 2022 worth Php896,400,000.00 - 15% initial payment
  - SARO-BMB-D-23-0015963 dated 17 April 2023 worth Php896,400,000.00 - revalidation due to unused previous SARO.
  - SARO-BMB-D-23-0026645 dated 11 December 2023 worth Php2,390,400.00 - 40% 2nd MYOA milestone payment
  - SARO-BMB-D-24-0000886 dated 05 March 2024 worth Php2,689,200,000.00 - 45% 3rd MYOA milestone payment

* Winning Proponent: Elbit Systems (Israel)

* Product for Delivery: TBC, potentially ELI-3360MPA on ATR-72 platform

* Contract Price: 
Php5,976,000,000.00

* Residual Price: Php0.00

* First post by MaxDefense: 29 May 2015

* MaxDefense Searching Hashtag: #PAFLRPAAcquisition, PAFMPAAcquisition

* Project Status: Project restarted, initial funding to be released by 2021. Negotiations ongoing with different proponents, IAI-Elta and Elbit Systems -Elisra were shortlisted. Elbit Systems was declared the primary proponent, with Post Qualification Inspections ongoing as of 3rd week of June 2022. SARO for 15% initial payment released on 12 August 2022, revalidated by new SARO released on 17 April 2023. Notice of Award awarded to Elbit Systems on 14 November 2022, with amendments made on 05 January 2023. 


Overview:

History:

Being a maritime country, the Philippines is surrounded by vast bodies of waters that serves as its natural border with other countries. This natural environment is a strong reason for the Armed Forces of the Philippines to have a capable maritime surveillance, strike, and defensive capabilities.

For the Philippine Air Force, this means enabling to support maritime defense from the air.

But the PAF has not been operating an actual Maritime Patrol Aircraft since the early 1990s, when it retired the remaining Fokker F27-200MPA Enforcer aircraft, its first full-pledge maritime patrol aircraft with surveillance electronic systems, after the service was unable to repair those surveillance systems, and just converted the maritime patrol aircraft into standard troop carrier and transport aircraft.


One of the PAF's Fokker F27-200MPA Enforcer maritime patrol aircraft, this example operated until the late 1980s when it was written-off in an accident. Photo from Carlos Morillo Doria c/o Airliners.net.

In 2013, the PAF decided that acquiring new Maritime Patrol Aircraft would be among their top priority, and has included it in the Horizon 1 phase of the newly approved Revised AFP Modernization Program. As early as late 2013, the pre-procurement process of the Long Range Patrol Aircraft (LRPA) Acquisition Project  has been underway, and was decided to be a 2-stage bidding as guided by the Revised Government Procurement Act RA9184, that would start by June 2014.

The aircraft are to be completely delivered within 3 years after receiving the Notice to Proceed (NTP) from the DND.


Basic Requirements:

As a maritime patrol aircraft, among the basic requirements for the project are the following:

1. 2 brand new aircraft platforms, with at least 2 engines;
2. Minimum payload at maximum fuel total of at least 11,000 lbs.
3. Endurance of at least 7 hours with a minimum payload of 11,000 lbs.
4. Cruising speed of at least 200 knots at minimum payload of 11,000 lbs.
5. Range of at least 1,400 nautical miles with minimum payload of 11,000 lbs.
6. Service ceiling of at least 25,000 feet at minimum payload of 11,000 lbs.
7. Have 4 operator multi-function consoles
8. A crew rest area for 3 personnel
9. Have 2 units standard High Frequency (HF) radio, two Very High Frequency (VHF) radio for AM/FM communication for communication with ground and naval units and other military aircraft.
10. Have 2 units Marine Band Radio to communicate with commercial vessels
11. Have 1 Satellite Communications (SATCOM) for voice, data, and fax data communications
12. Mission system including:
 - Search Radar, 
 - Aerial Surveillance Electro-Optical/Infra Red (EO/IR) Camera, 
 - Electronic Support Measure (ESM),
 - Electronic Intelligence (ELINT), 
 - Communications Intelligence (COMINT), 
 - Magnetic Anomaly Detector (MAD), 
 - Sonobuoy Processor and Receiver, 
 - Downlink System
 - Tactical Data Link (dependent on AFP's selected common TDL)


Other requirements include

1. Mission Support Facility
2. Downlink System
3. Sonobuoys
4. Bathythermal Buoys
5. Integrated Logistics Support
6. Pilot, Maintenance Crew, and Mission System Operators training,

A typical layout of the PTDI CN-235-220MPA, which was said to be non-compliant to the original specs, but may be reconsidered if the PAF decides to make changes to accommodate other factors including price. Photo credits to original source.

Procurement Attempts:

In its first attempt, none of the proponents passed the 1st stage bidding process, and the 1st bidding attempt was considered a failure.

A second attempt was made in 2016, with several proponents submitting their bids for the 1st stage bidding process. Only Airbus Military & Space was able to pass the 1st stage, and became eligible to participate in the 2nd stage which will be conducted later on.

But by early 2017, the 2nd stage bidding was declared a failure after Airbus Military & Space failed to submit a compliant bid for the project. According to MaxDefense Philippines, Airbus was unable to submit a compliant bid due to the project ABC's US dollar and Euro value shrank, and is now too low to allow Airbus to provide the requirements. It was confirmed later by MaxDefense sources that Airbus only offered 1 completed ASW-capable maritime patrol aircraft based on the C-295ASW Persuader, and 1 partially-completed MPA without ASW capability. This was not accepted by the PAF and DND Bids and Awards Committee, which declared the bidding a failure.


The Airbus C-295ASW Persuader of the Chilean Navy, which has an anti-submarine capability including the presence of magnetic anomaly detector (MAD) and munitions firing capability for anti-submarine torpedoes or anti-ship missiles. The PAF's original LRPA requirement also calls for these capabilities. Photo taken from Airliners.net.

A third attempt was made in mid 2017, this time with a more comprehensive technical requirements, and only conducting a single stage bidding process. Budget remained the same, as well as on the delivery timeframe.

Changes on specs include the following:

1. Addition of 2 Ultra High Frequency (UHF) radios per aircraft
2. Addition of Color Weather Radar per aircraft
3. Defined specs for Aerial Surveillance EO/IR camera, Search Radar, ESM, ELINT, COMINT, MAD, Sonobuoy Processor and Receiver and other subsystems

This was probably due to experience in Airbus' 2nd stage bidding submission in the 2nd bid attempt.

But this bid attempt also failed, after which the Philippine Air Force decided to put the project at the backburner.


Offers:

Several proponents made offers for the project, including complete manufacturers and system integrators.

Manufacturers include Airbus Military with their P-295MPA and P-295ASW Persuader, which is based on the C-295 medium tactical transport aircraft, Leonardo with the ATR-72MP / P-72A based on the ATR-72 commercial turboprop aircraft, and PT Dirgantara Indonesia with their CN-295M-220MPA based on the CN-235 medium tactical aircraft.

System integrators include Sweden's Saab with their Swordfish MPA using the Bombardier Q400 Dash-8 turboprop aircraft, Canada's PAL Aerospace with a MPA solution using also the Q400 Dash-8 aircraft, Israel's IAI Elta and Elbit Systems, both of which is open to use either the C-295 or ATR-72 aircraft, and Thales Group which is also open to use the C-295 aircraft.

The Saab Swordfish MPA using the Bombardier Q400 Dash-8 platform. Photo taken from Saab.


According to MaxDefense's sources, solutions using the C-295 and ATR-72 aircraft appear to be in the lead, due to the C-295's commonality with the PAF's current fleet of medium tactical transport aircraft, and the ATR-72's practicality and use of the same engines as the C-295.

The ATR-72 was also found to be favourable due to it not using modular systems, which despite its advantages, was found to be a disadvantage for the PAF due to fears that the aircraft itself would be used for transport rather than maritime patrol.

The ATR-72MP, this example with the Italian Air Force. Photo taken from Leonardo's website.

Nonetheless, the PAF needs a new Maritime Patrol Aircraft, as the PAF relies heavily on transport aircraft from the 220th Airlift Wing, which does not have any surveillance sensors except for a single C-130T Hercules that was installed with the SABIR surveillance system, although has been busy with transport duties and maintenance in the past 2 years to the point that it appears to have not been used for maritime patrols.


Looking Forward:

A new MPA could also avoid something like this from being conducted:

A typical maritime patrol mission of the PAF using  what appears to be a Fokker F27 Friendship transport aircraft and DSLR cameras. Note the potential risk in this. Photo taken from PAF's 220th Airlift Wing.

Current transport aircraft do not even have bubble windows that could allow lookouts or camera shots to be taken properly from the cabin.


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U P D A T E S:
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04 November 2020:

We posted a new video on our Philippine Defense Resource TV @ Youtube regarding the planned restart of the LRPA Project.


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08 November 2020:

MaxDefense Philippine reported in its blog entry last 04 November 2020 that the Philippine Air Force plans to restart the Long Range Patrol Aircraft Acquisition Project, and has requested for the use of part of the Php5 billion unappropriated funds as part the GAA for AFP Modernization Program under Fiscal Year 2021.

The budget requested under a possible Multi-Year Contractual Allocation (MYCA) is worth 15% of the project's ABC, at Php896,400,000.00.

The PAF's LRPA Project was proposed to be funded starting FY2021. Photo taken from DND's presentation to the Senate last October 2020.


It now remains to be seen if the project will push through as planned, although it is expected to be conducted through Government-to-Government (G2G) procurement, which means the governments of those offering their products should help them win the project.

If that will be the case, Saab could be at a disadvantage due to the lack of defense agreements which are mechanisms for G2G deals. Another problem would be for the PAL Aerospace, whose Canadian government already experienced issues when the Trudeau administration questioned the Duterte administration's human rights issues, which led to Pres. Duterte ordering the cancellation of a deal between the DND and the state-owned Canadian Commercial Corporation which represents on behalf of Bell Helicopters.

While the Indonesian government has already reached a defense agreement that allows for G2G deals, the issue with PT Dirgantara Indonesia's CN-235-220MPA remains its size and performance issues not meeting what the PAF is looking for. But they have made a very generous offer to compensate for the CN-235-220MPA's shortcomings by offering a light lift aircraft, most likely a NC-212i Aviocar, as part of the deal.

Due to its bad experience in dealing with the DND, Thales Group may also pass on this project.

Leonardo's bad reputation in terms of providing aftersales support to the Philippine Air Force and Philippine Navy has become a major negative concern, although there are signs that they remain a force to reckon with due to Leonardo also being considered for other potential PAF projects involving helicopters.

Airbus remains a favourite despite concerns from the LRPA TWG of their hesitation to use a platform that can be converted to a transport aircraft even if there are many advantages in terms of commonality in logistics and training with the existing C-295M fleet of the PAF. Price is also another concern as the prices of aircraft are expected to be higher than in 2017, which means Airbus may not be able to offer a complete ASW-capable MPA, unless if the PAF allows the ASW capability to become "Fitted for but not with" again.

It remains to be seen which will the PAF select for their LRPA project, which we expect to happen next year.

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19 February 2022:

During the ongoing Singapore Airshow 2022, PT Dirgantara Indonesia confirmed that they are still running after the Philippine Air Force's Long Range Patrol Aircraft Acquisition Project, offering the CN-235MPA maritime patrol aircraft.

Since the project already had multiple bidding failures, PTDI is expecting that the DND would undertake a Negotiated Procurement process, and will approach several proponents and compare their offers.

To sweeten the deal, PTDI plans to include participation of Philippine companies in the project, something that they haven't considered in the past offers.

MaxDefense Philippines believes that PTDI is just one of the possible proponents, while Airbus Defense, Leonardo, Saab, and several other companies are expected to make their offers.

The LRPA Acquisition Project is one of the remaining Horizon 1 projects in the RAFPMP that has not reached even an award stage.


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21 June 2022:

Our parent page MaxDefense Philippines received updates on the Long Range Patrol Aircraft Acquisition Project, which confirms that the project has been quietly moving forward in the past several months.

According to sources, the Philippine Air Force's Technical Working Group for the project are currently conducting Post Qualification Inspection (PQI) in two locations: one team is in Israel conducting PQI for the sensors and surveillance equipment, and the other is in Europe conducting PQI for the aircraft platform.

It appears that Elbit Systems and its subsidiary Elisra are the current front liner for the project, which has offered their maritime surveillance system integrated into the ATR family of turboprop aircraft from French-Italian venture ATR.



The ATR-72 is expected to be the platform to be used, which has already been done before, but using by another company, like the Leonardo P72 MELTEM as shown above that was made for the Turkish military, as well as the ATR-72MP for Italy and Pakistan. Photos credited to Leonardo.


While it was unconfirmed what exactly did Elbit Systems offered to the PAF, the company currently has maritime patrol systems, which they can configure to fit aircraft platforms preferred by the client, in this case the ATR-72 regional airliner aircraft.

Previously, MaxDefense Philippines discussed that the ATR-42 and the longer ATR-72 were found to be cheaper to acquire, maintain and operate than the Airbus C-295M or C-295W aircraft already in service with the PAF, or even to the Bombardier Q-400 Dash 8, although the ATR-42 and ATR-72 are slower in terms of operating and maximum speeds, and in climbing/gaining altitude.

It still remains to be seen if Elbit Systems and ATR will pass the PQI, which is scheduled to be completed within the week.

Should the PQI be successful and Elbit Systems and ATR pass them, it remains to be seen if a Notice of Award can be provided within the month. Based on the timelines, it appears that this project will not even have a recommendation from the PAF TWG available by end of June, so we are expecting a decision only to be made by July 2022, and a possible tender awarding by August 2022, well within the administration on President-elect Ferdinand "Bongbong" Marcos Jr.

More updated will be posted here and in MaxDefense Philippines' social media page once information becomes available.

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07 September 2022:

The Department of Budget and Management (DBM) has released a SARO worth Php896.4 million last month.

The amount appears to be worth 15% of the project cost of Php5,976,000,00.

With the SARO released, its now safe to say that a Notice of Award would be coming out soon, which MaxDefense Philippines believes to be an Israeli company.

The LRPA project is among the remaining Horizon 1 phase project in the RAFPMP, and was actually among the first big ticket items that were started for acquisition, but got stuck after several tender failures.

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03 March 2023:

As posted in MaxDefense Philippines' social media page:

As part of the Department of National Defense's latest Procurement Monitoring Report as of January 2023, another project whose Notice of Award was already released was the Long Range Patrol Aircraft Acquisition Project of the Philippine Air Force.

The NOA was released on 14 November 2022, although it was amended on 05 January 2023. It would be remembered that the SARO for this project was released on August 2022.

MaxDefense Philippines was the first to report back in September 2022 that the project is potentially for award to Israel Aircraft Industries (IAI) and/or its Elta Systems subsidiary, and will be using the ATR series of commercial twin-engine turboprop aircraft.

The Long Range Patrol Aircraft Acquisition Project of the PAF is one of the few remaining Horizon 1 phase project that has not reached finalization, considering it is one of the first projects of the Horizon 1 phase to be started back in late 2013.

MaxDefense PH reported several years ago that Airbus Military previously won the project, but failed in the Post Qualification Inspections due to their inability to deliver 2 fully-kitted aircraft, and this restarted the project which spiralled to further delays.

With the NOA released, it is a matter of time before the Contract is signed and Notice to Proceed is released, or probably already signed and released subject to further confirmation.

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22 April 2023:

The Department of Budget and Management (DBM) has released a new SARO worth Php896.4 million last 17 April 2023 to revalidate the previous SARO released last 2022, which was unused and returned back to the DBM.

The revalidation shows that no awarding was made to the winning proponent, and that it might be needed now again as the DND could be close to releasing the Notice of Award, believed to be an Israeli company due to the Government-to-Government (G2G) nature of the project with the Israeli Ministry of Defense.

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10 July 2023:

Elbit Systems has confirmed that it has won a contract worth US$114 million to supply 2 Long Range Patrol Aircraft (LRPA) to an Asia Pacific country, which is obviously the Philippines, as the Philippine Air Force has a program for 2 LRPAs where Elbit Systems is the front runner.

Based on Elbit's statement, the aircraft will be using the ATR-72-600 turboprop aircraft platform and will be equipped with Mission Management System, Radar, Electro-Optics, Signal Intelligence (SIGINT) and communication systems.

It appears that the requirements for the LRPA will not include anti-submarine warfare (ASW) but is able to do maritime and ground surface intelligence, surveillance reconnaissance (ISR).

This could be a reason why the Philippine Navy is expected to request for their own Maritime Patrol Aircraft under Horizon 3 phase.



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18 October 2023:

As posted in our MaxDefense Philippines's social media page:

The war between Israel and Hamas appears to be affecting the defense procurement contracts the DND has with Israel. This is due to doubts on the ability of Elbit Systems and Israel in general to deliver the products on time and meeting specifications.

So far, Defense Sec. Gilberto Teodoro has confirmed last 13 October 2023 that they are deferring action on the contract with Elbit Systems for two Long Range Patrol Aircraft, subject to recommendations by the Philippine Air Force's Technical Working Group (TWG) on the LRPA Acquisition Project.

Other defense acquisitions with Israel may also be impacted and the DND together with the different TWGs of the AFP will need to look into these.

Elbit Systems previous won a contract to supply 2 LRPAs based on the ATR-72-600 turboprop aircraft, with Elbit Systems supplying and integrating their intelligence, surveillance and reconnaissance (ISR), mission management system, communications and other subsystems.

This would be another setback to the LRPA Acquisition Project which has been ongoing since 2012 and was only reached contracting stage in 2023.

MaxDefense Philippines believes that the DND should find other ways to fill in the requirements for a true special missions and/or maritime patrol aircraft including considering used P-3C Orions from US EDA stocks. These gap fillers can continue serving with the PAF or even PN even when the new LRPAs are delivered.

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12 December 2023:

The Department of Budget and Management (DBM) has released the 2nd tranche of payments for the Long Range Patrol Aircraft Acquisition Project of the Philippine Air Force, with a new SARO for 3 different projects combined into one.

The SARO-BMB-D-23-0026646 dated 11 December 2023 and released on the same date worth Php11,390,400,000.00 includes the 2nd milestone payment for the LRPA Acquisition Project worth Php2,390,400,000.00.

This is worth 40% of the total contract cost, which brings the payment made for the project at 55% of total cost.

The release of this SARO means that Elbit Systems has reached a milestone in its manufacturing of long range patrol aircraft, most likely acquiring all the necessary subsystems and the platform aircraft and preparation for the integration of the said subsystems to the first aircraft.

It remains to be seen though how long can ATR deliver the first ATR-72-600 turborprop aircraft to Elbit Systems, considering that most of the subsystems to be installed on the aircraft are made by Elbit Systems itself and may have already been readied while awaiting for the aircraft to arrive.

This milestone also means that the Department of National Defense has found that Elbit Systems and the Israeli Ministry of Defense are still committed to deliver the aircraft despite the war between Israel and Hamas in the Gaza Strip.

Screenshot of the SARO taken from DBM.


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06 March 2024:

The Department of Budget and Management (DBM) has released the 3rd MYOA milestone payment for the LRPA Acquisition Project.

The SARO-BMB-D-24-0000886 dated 05 March 2024 and released on the same date is worth Php2,686,200,000.00, which is equivalent to 45% of the total contract cost.

The 3rd MYOA milestone payment. Screenshot from DBM's SARO 2024.


This means that the Philippine Government has released a total of 100% of the contract cost, despite the aircraft not yet available, and delivery date is still far from originally expected of around 2025.

It remains to be seen as to why the Philippines agreed to pay the full amount of the project. The most potential reason is that Elbit Systems may be able to deliver the aircraft within the next few months, or earlier than expected.


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First edit and release: 08 November 2020
Copyright Philippine Defense Resource / MaxDefense Philippines