The Philippine Navy (PN) has quietly moved ahead and implemented the acquisition of another project under the Horizon 1 phase of the Revised AFP Modernization Program.
Based on the Philippine Navy’s recent publicly-released documents the Philippine Navy has pushed through with the Multi-Purpose Attack Craft (Series 2018) acquisition project, which is a “2nd List of Horizon 1” project that was approved for acquisition.
The MPAC Mk. III built by Propmech-Lung Teh JV. The same design, with probably minor changes, will be used for the 4th batch of MPACs to be acquired by the Philippine Navy.
To avoid confusion, here is how it goes:
The Philippine Navy’s Horizon 1 phase, which was approved for implementation in 2014, previously had a Multi-Purpose Attack Craft (MPAC) Acquisition Project with an Approved Budget for Contract (ABC) worth Php270 million. This was also called the “MPAC 3” during its pre-delivery phase. This was awarded to a Joint Venture of Propmech Corporation and Lung Teh Shipbuilding Co. Ltd. The former is a Filipino-owned company while the latter is a boatbuilder from Taiwan.
The boats acquired from this project, now known as the MPAC Mk. III Series 2014 (specifically the BA-488, BA-489, and BA-491) were delivered mid 2017, and are now being installed with weapon systems acquired from Rafael Advanced Systems Ltd. of Israel as they are scheduled to conduct the Philippine Navy’s first ever test firing of a surface-to-surface missile this coming July, as revealed by PN FOIC VAdm. Robert Empedrad recently.
This project we are discussing is part of the Philippine Navy’s “2nd List of Horizon 1”, an extension program of the Horizon 1 phase that was approved for implementation only in early 2016, has an acquisition project for another batch of MPACs. The Philippine Navy, based on new bid documents, appears to call this project the MPAC Mk. III Series 2018, to differentiate it from the MPAC Mk. III Series 2014 project. For convenience, let’s call it as how the PN does.
This project has an ABC of Php270 million (similar to all other MPAC acquisition projects), and involves the acquisition of three (3) brand new MPACs that can be armed with missile systems similar to those of MPAC Mk. III Series 2014.
It was only several weeks ago that confirmation of who bagged the MPAC4 contract, which is the Joint Venture of Propmech Corporation and Lung Teh Shipbuilding. The Department of National Defense (DND) did not release a Letter of Award (LOA) in their website, but based on the Special Allotment Release Order (SARO) made by the Department of Budget and Management (DBM) under SARO-BMB-D-17-0024343 approved on 15 December 2017, the value is expected to be at Php269,799,999.99. This amount was released on 18 December 2017 based on the DBM’s SARO release records.
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