Disagreements stall fighter jets purchase

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DISAGREEMENTS have hampered the sealing of a contract between the Philippines and South Korea for the acquisition of 12 fighter jets worth P19 billion which is seen to boost the capability of the Philippine Armed Forces.

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Defense Undersecretary Fernando Manalo on Monday said that negotiators disagreed on the terms of payment and validity of the warranty of the spare parts.

Manalo explained that under the terms of the contract, the warranty for spare parts is two years or 600 hours of flying time whichever comes first and within that period, the supplier firm, the Korea Aerospace Industry (KAI), should deliver the replacement for defective parts in 30 to 45 days upon receipt of the notice.

But the KAI wanted a longer period of 180 days because it would take the firm some time to come out with a replacement on such modern and expensive spare parts.

Another contested issue, he added, is KAI’s demand of 52 percent advance payment and progressive billing, which is contrary to the provisions of Republic Act 9184 or the Government Procurement Act.

The law only allows a 15 percent down payment and the balance will be paid upon delivery.
Manalo said the Department of National Defense’s Bids and Awards Committee will not approve a contract that will not follow what the law requires.

“We can only recommend to the President. You can just imagine that a big portion of the P18.9- billion budget would be immediately invested from the start,” Manalo said. He pointed out that if the government fails to heed the KAI’s request, an additional cost would be added to the original contract price.

Notwithstanding the disagreements, the official remains confident that they would be able to thresh out the kinks and sign the contract because the Air Force badly needs fighter jets to strengthen its air capability.

“We are already preparing our firm position and then we are going to submit it to KAI for them to determine whether that is acceptable,” he said. “We will immediately resolve the issue. They will either accept or reject all the unresolved issues.”

Manalo said they wanted the issues resolved within the year.

The procurement of 12 Korean-made FA 50 fighter jets was approved in December 2012. The funding will come from the P75 billion modernization program set for implementation in the next five years.

The DND originally planned to procure a squadron or 24 fighter jets but reduced it to 12 because of funding problems.

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10 Comments

  1. We need the jet without delays as our Country is an Island we need to patrol our skies and open vast seas to avoid China further intrusion and usurpation of our territories. Don’t wait time is precious, any delay is our loss. Better to have a dialogue and get a win win situation.

  2. May jet ka nga, eh kasing bagal ka namang kumilos ni Pnoy…wala din….

    Ipanakaw na lang kaya ulit ang pera sa mga LP at yellows…hahaha

    mga UNGAS!

  3. well just give it to their demands give them a down payment of 52% now na….. and allow them for the spareparts delivery of 180 days….. para matuloy na yan …..

  4. both are needed, transport planes and heavy lift choppers like chinooks but the FA-50 fighter jets are also needed for the PAF needed capabilities in securing the skies and more air patrols in WPS. its kind of hard to wait until thousands of Filipinos will die if China suddenly attacks Palawan, then is that the time to order some fighter jets like after Yolanda suddenly congress and senate realized the need for more C-130 cargo planes and choppers? too late, after 5000 people perished. if the PAF had those assets maybe only 2500 people have died. its long overdue that the politicians stop bankrolling their personal interests and spend more money for the upgrades and modernization of the armed forces as they do both defense and disaster reliefs and for this missions you need assets. otherwise you cannot do the job or its mission impossible.

  5. For a price of $35M a piece it is better to scrap the deal and use half of the total amount to buy Large Helicopters or C-130’s for disaster purposes and half to buy drones from Israel. Those drones are the defense system of the future. With $210M (half of the total) you can probably buy 200 of those @ $1M a piece. You can use those to fight against any type of force: Missiles, Aircrafts, Warships, Carriers & even Submarines. You can use them also for surveillance. Also, they are more economical on fuel and maintenance Makes sense?

  6. What? Fighter jets? Our Air force is not ready to acquire one, how many Huey we’ve got down on the wire? We cannot even respond to the surprise damaged given by the previous typhoon, how much more if we acquire the jets and countries of much power will think they can deploy immediate attacks with complete force in lieu of exercising decisive air defense. I think our government are not discussing ahead of the probabilities. In which way we are still pitiful at the mercy of rampaging nature, and we are more vulnerable at merciless humankind.

  7. In modern avionics, maintenance is king. With the governments not so exemplary record in observing proper preventive maintenance systems, it will only be a matter of time before these jets turn unserviceable.

    A more logical choice for the AFP is the procurement of early warning systems, e.g. 3-D radars, interrogators and other surveillance implements to let friend and foe alike know that we are aware of everything within our domain.

    And instead of fighter jets, we should seriously consider putting up SAM batteries on our western seaboard. These are exponentially better deterrents than a mere squadron of second-tier jets from Sokor…

  8. AAh, The Filipino is one of the toughest to deal with in business, lack of transparency, and rules of the game changes in the course of wheeling-dealing.

    “The DND originally planned to procure a squadron or 24 fighter jets but reduced it to 12 because of funding problems.” The security and defense of the country is a paramount premium. But the Leadership usual lame excuse is always the well-trodden path of “lack of funds issue”, But the Leadership Admin, whoever is that sitting Prez in that Malacanang always have squadrons and squadrons of political agendas fattening their pocket linings, AFP Generals enriching themselves and their Families, Senators and Congressmen in cahoots with private NGO’s stealing public funds….again, and again, and again, – lack of funds – Tell it to the Marines, people.

  9. Why not CHINOOC helicopter, a multi-mission and heavy lift transport heilicopter for the Armed Forces of the Philippines (AFP) ?

    The Philippines is in the RING of FIRE in the pacific, a disaster’ prone country in the world…20 typhoons, earthquake and landslide.

    Mas mainam at magagamit sa RELIEF and REHAB operations and CHINOOK helicopter than the 12 fighter jets worth P19 billion na surely naman will not be used to counter balance modern warfare CHINESE INTRUDERS in West Philippine sea..