Cebu City”•The Defense Department will likely sign a P30-billion agreement before the end of the year with Austal Philippines, the local unit of Australian shipbuilder Austal, for the construction of six offshore patrol vehicles.
Defense Secretary Delfin Lorenzana said the agreement would be pursued under a government-to-government transaction to make sure the Philippines would get the required equipment in time.
“We are 70-percent sure that the crafting of the OPV will be with Austal. We only need to make sure we can do this via G2G so we can be assured that we will get the equipment we need,” Lorenzana said.
He said a G2G transaction would be more efficient and faster than going through the bidding process.
“In addition, the transaction will be protected under a sovereign guarantee,” Lorenzana said.
Austal chief executive David Singleton said the first OPV could be delivered within two years once the agreement was signed before end-2019.
The delivery of the entire fleet of six OPVs might take 10 to 12 years depending on the urgency and need of the Philippine Navy.
The OPVs will be constructed using high-grade aluminum metal with designs following the specification of the Philippine Coastguard.
It was Austal Philippines that expressed to build the OPVs to complement the modernization program of the Armed Forces of the Philippines.
Equipped with a license to construct naval vessels, the shipyard in Cebu province is ready to deliver major naval projects such as the offshore patrol vessels for the Philippine Navy.
The vessels offered by Austal are a larger variant of the Cape-class patrol vessels used by the Royal Australian Navy and Australian Border Force.
Austal also offered maintenance services to keep the military vessels in top form while protecting the country, government and civilians.
Austal said it would also accept offers to build other types of military vessels to serve domestic demand and the export market.