The Philippines is set to buy two Maestrale-class frigates from Italy, a defense official said on Wednesday, as the Asian nation races to upgrade its military amid mounting territorial disputes with China.

The frigates, along with 12 FA-50 fighter aircraft, are the most significant items on the government’s P75 billion ($1.7-billion) military modernization budget over the next five years, Defense Undersecretary Fernando Manalo said.

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