Fast Attack Interdiction Craft with Missiles Phase 2 Acquisition Project of the Philippine Navy

Philippine Defense Resource February 02, 2025 0

As part of the Re-Horizon 3 phase of the Revised AFP Modernization Program (RAFPMP), the Philippine Navy raised a requirement for 10 new Fast Attack Interdiction Crafts with Missiles (FAIC-M) which would allow for defense and security of littorals including the tri-borders with Indonesia and Malaysia, as well as in the West Philippine Sea including the Kalayaan Island Group.

This project discusses about the upcoming Fast Attack Interdiction Craft with Missile Systems Acquisition Project of the Philippine Navy, also known as the Fast Attack Interdiction Craft with Missiles (FAIC-M) Acquisition Project. This is to separate from an earlier project with the same/similar name.

The BRP Nestor Acero (PG-901), an Acero-class fast attack interdiction craft. Photo credits to the Philippine Navy.

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Project Summary:

Fast Attack Interdiction Craft with Missiles (FAIC-M) Phase 2 Acquisition Project:

Note: Edited as of 02 February 2025.

* End User: Philippine Navy (Littoral Combat Force)

* Quantity: 10 units

* Modernization Phase: Re-Horizon 3 Phase of RAFPMP,

* Project ABC: Php16,000,000,000.00 (divided into several lots)

* Acquisition Mode: TBC, most likely Government-to-Government with the still unknown country

* Source of Funding: TBC

* SARO Release/s: TBC

* Winning Proponent: TBC

* Product for Delivery: TBC

* Contract Price: TBC

* Residual Amount: TBC

* First post by MaxDefense: 02 February 2025 (this post)

* MaxDefense Searching Hashtag: #PNFAICMPhase2Acquisition

* Status: The project was added upon the reboot of Horizon 3 into Re-Horizon 3 program, to increase the number of fast attack interdiction crafts to increase overall capability and meet increased security threats. The Littoral Combat Force has raised this project for funding in FY2025 but failed to get included due to reduced Programmed Funding for the AFPMP Funds. To be determined if other means would be used to start implementing the project as soon as possible.

An Acero-class FAICM firing a Spike NLOS SSM during exercises. Photo credits to the Philippine Navy.

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Overview:

The Philippine Navy raised the requirement for a new fast patrol boat for the Littoral Combat Force, as it starts to wind down operations of its ageing fleet of Tomas Batilo-class (South Korean Chamsuri-class) fast attack crafts, which have all retired from active service since 2021.

This resulted to the selection and acquisition of the Israeli-designed and made Shaldag Mk. V fast attack crafts from Israel Shipyards, which were acquired under the Philippine Navy’s Fast Attack Interdiction Craft with Missiles (FAIC-M) Acquisition Project as part of the 2nd List of Horizon 2 phase of the Revised AFP Modernization Program.

A total of nine boats were part of the Php10 billion deal, which included arming all boats with the Rafael Typhoon Mk.30C remote controlled weapon station mounting a 30mm Mk.44 Bushmaster II autocannon as well as two Mini Typhoon RCWS mounting a 12.7mm M2 heavy machine gun.

Four of the boats will be equipped with the Rafael Typhoon MLS-NLOS missile launcher, which allows for the use of the Spike-NLOS short-range surface-to-surface missiles.

The Spike NLOS missile launched from a Typhoon MLS-NLOS launcher. Credits to photo's original source.

As the Littoral Combat Force’s existing assets reaches obsolescence, it was expected that the unit will request for more assets to make sure overall availability and capability are not compromised by extended servicing times and durations of existing assets.

With this, the Littoral Combat Force have raised a requirement to acquire additional Fast Attack Interdiction Crafts, all of which are now requested to have short-range missile capabilities.

Based on the Approved Re-Horizon 3 Phase Acquisition Plan signed by President Ferdinand Marcos Jr. in 2024, the Philippine Navy Littoral Combat Force is requesting for funding to acquire 10 additional Fast Attack Interdiction Crafts, including weapon systems like the Rafael Typhoon, Mini Typhoon and Typhoon MLS-NLOS RCWS, ammunition and spares, as well as potentially arming the 5 other FAICs delivered under the initial batch with the Typhoon MLS-NLOS missile launchers.

The proposed budget for the project is larger than the initial batch, with Php16 billion being allocated for 10 boats, compared to Php10 billion for 9 boats back in 2020. This is to cover price increases due to inflation, as well as the local construction of the boats in the Philippine Navy's Naval Shipyard in Cavite, plus the increased number of missile systems to be acquired.

It is expected that the contracts for the fast attack interdiction craft, the weapon systems and ammunition, and potentially for the system integration will be separate from each other.

Since the Philippine Navy already operates Israel Shipyard's Shaldag Mk. V fast patrol boats, known collectively in the PN as the Acero-class fast attack interdiction craft, it only makes sense for the same design and weapon systems to be used for the additional units, although there is also a possibility of a departure depending on the Israel's ability to deliver defense products, or if the Philippine Navy or DND prefer to look elsewhere for an alternative.

As of this writing, the project has not been included for funding under the Programmed Funding under the AFP Modernization Program for Fiscal Year 2025. It is not known if the project is among those included in the Unprogrammed Funding though, which will depend on availability f additional funding from the National Government.

There is also a possibility that the Philippine Navy may opt to start the project by using its Capital Expenditure (CapEx) funding embedded in their Annual Budget as provided by the GAA for FY2025, as this only requires the 10% initial funding to start.

Two Acero-class FAICs of the Philippine Navy during deployment. Photo credits to Philippine Navy.

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U P D A T E S:
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11 July 2025:

Our parent page MaxDefense Philippines received information that the Philippine Navy has entertained the possibility of acquiring a different platform and weapon system for its FAIC-M Phase 2 Acquisition Project.

An offer from France, specifically from both French shipbuilder OCEA and weapon system manufacturer MBDA, to supply FAIC-Ms to the Philippine Navy.

The platform is based on OCEA's FPB-98 Mk.2 design, with MBDA providing the missile system.

According to OCEA's offer, the FPB-98 Mk.2 fast craft can be manufactured in the Philippines under OCEA's upcoming Philippine facility that will be erected as part of a greater deal to acquire the FPB-110 fast craft for the Philippine Coast Guard.

This information was further supported when OCEA displayed a scale model of what appears to be a missile-armed FPB-98 during the PHILMARINE Expo 2025 held last June 2025, where it was seen with two single tube anti-ship missile launchers at the aft.

While MaxDefense Philippines has no confirmation as to what missile was offered, it believes that it could be MBDA's Marte Mk2/N or the Marte ER anti-ship missile, which are light enough to be carried by a small boat.

This will give the proposed FPB-98 FAIC-M a greater reach and firepower against enemy warships or surface targets, since the Marte Mk2/N and Marte ER are both purpose-built anti-ship missiles built for use against ships and have longer range, unlike the Rafael Spike NLOS missile found on the Shaldag Mk.V / Acero-class FAICs which are actually anti-tank missiles.

While firepower against warships increased, the only shortfall is that the FPB-98 FAIC will only have 2 missiles, unlike the Acero-class which has up to 8 Spike NLOS missiles in its trainable launcher.

It remains to be seen though if OCEA/MBDA's offer will hold traction as sources indicated the the price of the package appears to be more expensive than the Israel Shipyard / Rafael Advanced Defense Systems offer using Shaldag Mk.V and Spike NLOS combination.

Scale model at OCEA's booth during PHILMARINE Expo 2025 showing what appears to be a redesigned FPB-98 with two anti-ship missiles launchers, most likely MBDA's Marte Mk.2/N or Marte ER. Photo credits to Para Bellum @ X.

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07 September 2026:

A Korean financial press outlet has reported that the South Korean shipbuilder HJ Shipbuilding and Construction (formerly known as Hanjin Heavy Industries and Construction) is anticipating a potential order from the Philippines by the end of the year.

The ships are believed to be the Patrol Killer Medium with Rocket (PKMR)-class also known as the new Chamsuri 211-class rocket-armed high speed patrol boats, which are equipped with a Hyundai WIA 76mm naval gun, two S&T Dynamics K6 12.7mm heavy machine guns and a 12-round Hanwha-LIG Nex1 Biryong rocket launcher for guided rockets.

If the names sound so familiar, that is because the PKMR is the replacement to the original Chamsuri-class patrol boats of the Republic of Korea Navy, which were called the Patrol Killer Medium (PKM). This same class entered the Philippine Navy as the Tomas Batilo-class, which the Littoral Combat Force operated 7 units from 1996 to 2021.

The presence of a 76mm gun gives it a large caliber gun capability similar to those found in larger frigates, corvettes and OPVs, which is unusual for the size of the boat. And while it is not equipped with a missile system, it makes do with guided rockets which have a maximum range of 20 kilometers, and utilizes a combination of GPS, Inertial Navigation System (INS), and a real-time data link to stay on track.

So the question is, how true is this report?

At the moment we can only analyze based on what we know.

If one notice the news report, it obviously is not a fake news propagandist and is actually a legitimate press report that caters to businesspeople and investors in South Korea. The report shows a strong certainty that on their part, their information is real that a November 2026 could be a possible breakthrough.

For those following Korean press reports in the past months, it appears that November 2026 is a major date to watch out, as this is also the month that other Korean defense companies like Korea Aerospace Industries (KAI), Hanwha Ocean, HD Hyundai Heavy Industries, among others, are expecting orders from the Philippines to put into ink. This includes the KF-21 Boramae fighter, the KSS-IIIPN submarine, and the 3rd batch of Miguel Malvar-class frigates, respectively.

Our parent page MaxDefense Philippines also have some basis to use. First of, Re-Horizon 3 phase of the RAFPMP actually includes a program to acquire more Fast Attack Interdiction Crafts (FAIC) to add to the existing Acero-class (Shaldag V) fast attack crafts for the Littoral Combat Force.

So far, MDP was told by its sources, and also with some signals from recent statements from Defense Sec. Gilberto Teodoro, that there are no new orders for Israeli defense systems aside from maintaining, arming and sustaining those already in service. So this means that any additional Shaldag Mk. V fast attack crafts from Israel Shipyards appear to be out of the question.

An offer was made by French shipbuilder OCEA for a new missile boat design using their FPB-110 design, to be armed with an anti-ship missile from MBDA and can be built locally in OCEA's planned yard in the Philippines. But according to MDP's sources, the Philippine Navy found the total package offer expensive, probably due to the use of an MBDA anti-ship missile with far more capable than the Spike NLOS missiles aboard the existing Acero-class.

It is not a secret that the DND, particularly the Philippine Navy, has opened to Korean offers for naval platforms and weapons due to their quick delivery timeframe, strong supply chain infrastructure, and cheaper purchase price compared to European and American alternatives.

MaxDefense Philippines also confirmed that the PKMR as well as the larger PKMG armed with the C-Star anti-ship missiles have been offered to the Philippine Navy since a few years ago, and the Littoral Combat Force has shown interest in them. A potential order for the PKMR could be made through their original plan for additional FAICs.

Our parent page MaxDefense Philippines can confirm with confidence that an order for four PKMR boats, especially when packaged together with a planned order for two units for the Republic of Korea Navy, is within the budget for additional FAICs within Re-Horizon 3 although unit per unit, the PKMRs are definitely more expensive than Shaldag Mk V (Acero)-class patrol boats from Israel.

But noting that the PKMR are considerably larger, has better sensors and more capable weapon systems, then it is generally expected that they are more expensive.

So while we cannot confirm yet if the report is true or not, MaxDefense Philippines can say that the report that the Philippine Navy is highly interested in acquiring four PKMR high speed boats is high possible.

Photo credits to SeaForces.org.

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15 September 2026:

With news on the potential procurement of PKX-B aka Patrol Killer Medium Rocket (PKMR) for the Philippine Navy, there are interesting insights that we'd like to highlight:

Photo credits to 360ANAVY @ X.

1. Use of guided rockets instead of missiles:

This would be new for the Philippine Navy, as the PKX-B/PKMR relies on a precision guided, short range rocket system, particularly the LIG Nex1 Biryong 130mm guided rocket system, instead of a guided missile for its anti-ship / land-attack requirements.

The advancement of guidance system for dumb rockets has allowed for their upgrade as a cheaper and more compact alternative to guided missiles.

In Republic of Korea Navy doctrine, the PKMR's rocket system was designed to attack North Korean amphibious assault hovercraft and landing crafts, which are slower and has a more predictable path. The rocket's warhead might be too small against larger surface warships (OPV-Corvette-Frigate), and might not be good enough to hit faster targets like unmanned surface vessels, or manned fast attack crafts and patrol boats.

This is not the first time the Armed Forces of the Philippines looked at guided rockets for anti-ship purpose. Remember the Land Based Missile System (LBMS) project during the Horizon 1 phase of the RAFPMP, which was supposed to employ the Israel Military Industries (IMI) Coast and Island Defense System (CIDS) armed with a variety of guided rockets including the IMI EXTRA 306mm guided rocket with a range of 150 kilometers, and the IMI AccuLAR 160mm guided rocket with a range of 40 kilometers, as well as the Delilah surface-to-surface missile with a range of 250 kilometers.

Currently Vietnam employs the IMI CIDS (which is now part of Elbit Systems), with the IMI Lynx MLRS that was suppose to be the platform now called the Elbit Systems PULS that has been offered to the Philippine Army and Philippine Marine Corps for its latest Joint MLRS Acquisition Project.

As to how effective are guided rockets against ships remains a question though.

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2. The Introduction of Hyundai WIA's K-76L/62 76mm Naval Gun:

The main gun of the PKX-B is the 76mm Hyundai Wia K-76L/62 naval gun, with a 100 rounds per minute rate of fire and has similarities with the Oto Melara 76mm Super Rapid gun that the Philippine Navy is more familiar with.

But should the Philippine Navy procure the PKX-B, it is unknown if they have the option to mount the Oto Melara 76mm Super Rapid gun or any other gun like the Bofors 40mm or BAE Systems 57mm naval guns, considering the Koreans are probably offering the boats in its original design with a few minor updates.

If the PN ended up with the Hyundai WIA K76L/62 naval gun, this will pave the way for the acceptance of the gun on future surface warships including frigates, corvettes and OPVs.

It would be remembered that the reason why the Jose Rizal-class frigates did not end up with the Hyundai WIA 76mm naval gun was due to their more familiarity with the Oto Melara model, considering the Del Pilar and Jacinto-classes have the Oto Melara 76mm Compact, which is an older and has a reduced rate of fire compared to the Super Rapid. The PN insisted on the Super Rapid by indicating in the technical specifications that they were looking for a 76mm naval gun with a 120 rounds per minute rate of fire, which the Hyundai WIA gun cannot meet.

Now this can break Oto Melara's foothold and allow Hyundai WIA to be used for future PN warships as well.

Photo credits to Hyundai WIA.

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3. Alternative to the Acero-class?

The acquisition of the PKX-B was not in any of the Horizon 3 / Re-Horizon 3 proposals since the early 2020s, with the PN originally looking for either larger ships similar to the Alvarez-class (Cyclone-class) inshore patrol vessels, smaller fast interdiction craft like the Acero-class (Shaldag Mk. V) or even smaller MPACs armed with missiles like the MPAC Mk. III.

While there have been calls to consider missile boats like the Indonesian KCR-60 and the South Korean PKX-A (aka PKMG), the PKX-B is something totally different from all these proposals.

The question now would be where the funding would be coming from. Is it coming from the funding originally allocated for the acquisition of additional Acero-class FAICs or similar alternatives, or will it come from a different funding that has not been included on the approved Re-Horizon 3 procurement plan of 2024?

Take note that prior to announcments from Korea about the possible acquisition of four PKX-B by the PN, the last proposal that we knew was that from France's OCEA, which proposed an FPB-98 Mk. II fast boat equipped with a medium-range anti-ship missile from MBDA.

Based on information we gathered, the Philippine Navy found the OCEA + MBDA proposal to be too expensive compared to the proposal from Israel Shipyard + Rafael for another batch of Shaldag Mk. V equipped with the Spike NLOS short-range missile.

It remains to be seen though as to how much the difference is between the French OCEA + MBDA proposal compared to the PKX-B proposal from Korea. The point that the PN might be willing to bite the PKX-B proposal means that they are willing to spend more on their future fast patrol boats than what they were originally willing to.

A scale model of an OCEA FPB-98 Mk. 2 with anti-ship missiles from MBDA. Photo credits to original source.

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4. Introduction of PKX-B may pave the way for PKX-A:

Once the Philippine Navy procure and operate the PKX-B, this would open the flood gates for a second Korean naval shipbuilder, HJ Shipbuilding & Construction (HJSC), to enter the Philippine naval market.

Unknown to many, the PKX-B / PKMR patrol boats were actually built by HJ Shipbuilding & Construction, which is the new name of Hanjin Heavy Industries & Construction which used to own and operate the Philippines' largest shipyard in Subic Bay currently operated by Agila Shipyard and leased with HD Hyundai Philippines. This means HJSC is not a stranger to the Philippines and may still bank on its previous ties to Philippine government agencies, suppliers and the local shipbuilding industry.

HJSC also designed and construct the larger PKX-A, also known as the Patrol Killer Medium Guided (PKMG), which is a larger design that carries proper anti-ship missiles instead of guided rockets, to be specific the LIG Nex1 SSM-710K C-Star anti-ship missile already in use with the Philippine Navy.

The introduction of the PKX-B means it would easy for both the Philippine Navy and HJSC to introduce the PKX-A in the future. Which, to be honest, is very likely considering there are proposals to give the Littoral Combat Force more punching power to enable it to engage larger potential aggressors/