Royal Thai Navy affirms on submarines procurement

BANGKOK, May 2 (TNA) - The Royal Thai Navy insists on a need to procure three submarines over the next decade to protect national sovereignty and interest. Royal Thai Navy Chief of Staff Admiral Luechai Ruddit told a press conference in Bangkok on May 1 on the need of the new submarines procurement project, stressing on the transparency of the purchase plan. Admiral Luechai, in his capacity as the chair of the new submarines procurement project, clarified that the Royal Thai Navy will use its own budget of 13.5 billion baht to procure the first yuan class S26T submarine from China based on a government-to-government contract, with its payment agreed on 17 installments. Admiral Luechai explained that the first payment of 700 million baht will be made within the present 2017 fiscal year, which ends on September 30, 2017, while the rest will be paid during the fiscal 2018-2023 years at about 2.1 billion baht each. Admiral Luechai said the Royal Thai Navy plans to procure the remaining two submarines within the next 10 years, noting that a total budget of about 36 billion baht has been carefully prepared for the procurement of the three submarines to limit the financial accountability solely to the Royal Thai Navy. The Thai navy chief of staff reiterated that the procurement cost is considered appropriate, transparent and accountable. Meanwhile, Royal Thai Navy Deputy Chief of Staff Vice Admiral Charoensak Maratana told Monday's press conference that the Royal Thai Navy has decided to procure the first submarine from China after thoroughly reviewing proposals offered by six rival countries. Vice Admiral Charoensak revealed that the procurement contract for the first submarine is expected to be concluded by the end of this month, with the first installed payment set within 45 days thereafter. (TNA)