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Corvette Acquisition Project

CorvetteKorea Shipbuilding & Marine Engineering won an order for two corvettes worth 583 billion won from the Philippines. According to Korea Shipbuilding & Marine Engineering on 28 December 2021, it signed a contract to build two corvettes with the Ministry of National Defense of the Philippines on the same day. The corvette ordered this time will be built by Ulsan Hyundai Heavy Industries [HHI] and delivered to the Philippines by 2025.

The Philippine Navy (PN) has been pursuing the acquisition of new guided-missile Corvettes as it continues to improve its combat capability as part of the service's modernization program. Two new corvettes are eyed under the Corvette Acquisition Project (CAP), as part of the Horizon 2 Priority phase of the Revised AFP Modernization Program (RAFPMP) which covers acquisition projects between 2018 to 2022. The CAP was delayed based on the Philippine Navy's programming, as they were hoping that a contract would be signed by 2020 to allow the first ship of the class to be delivered by late 2023. But COVID-19 pandemic affected the program, including the sourcing of funding by the Philippine Government.

The acquisition of new corvettes are among the priority projects of the Philippine Navy, and has been in its Desired Force Mix procurement plan since the early 2010s. According to the PN plans, they intend to have at least 12 corvettes completed and/or ordered by the time the Horizon 3 phase of the RAFPMP is completed by 2028. This is part of the Philippine Navy's planned acquisitions under Horizons 1, 2 and 3 phases of the RAFPMP, indicating their desire to acquire 6 corvettes under Horizon 2. In the end, funding for only 2 new corvettes were approved for funding by the Duterte administration.

Four shipbuilding companies were competing to win the PHP28 billion (US$555 million) contract for two corvettes. Turkey’s state-owned ASFAT has proposed its modified Ada-class missile corvette and Istanbul-class light frigate for the PN. The Ada-class missile corvette is a 100 meter long, 2,400 tonnes displacement ship. Netherland’s Damen Group offered its modular SIGMA-class multi-purpose corvette / frigate, ranging from the 90 meters long, 1,700 tonne displacement SIGMA-9113 corvette with a complement of 80 personnel to the SIGMA-10514, a 107 meters, 2,600 tonne displacement frigate. Naval Group’s Gowind 2500 design is also in the fray. The Gowind 2500 design that the group has offered is a 102 meters long, 2,500 tonnes displacement with up to 80 personnel.

South Korea’s Hyundai Heavy Industries (HHI) offered the HDC-3100 class corvette / frigate, with a length of 114 meters, a displacement of 3100 tonnes with a complement of around 120 to 140 personnel. The HHI’s HDC-3100 offering is an improved variant of the company’s own HDF-2600 frigate of which two had been sold to the Philippines and commissioned in the PN as Jose Rizal-class frigates. HHI agreed 28 December 2021 to construct and deliver two corvettes for the Philippines according to the requirement of the Philippines by year 2026. This is not the first time that HHI signed contract with the Philippines. For the previous Frigate Acquisition Project in 2016, DND has selected HHI as the contractor. By concluding the contract, HHI showed competitiveness of shipbuilding technology in the field of warships and contributed to defense-industrial cooperation between Republic of Korea and the Philippines.

Considering the covid-19 situation, the contract signing ceremony has been held online. Delegations from Department of National Defense and Navy of the Philippines and Representatives from Hyundai Heavy Industries has participated in the meeting. The ceremony was virtually attended by Philippine Ambassador to South Korea H.E. MARIA THERESA B. DIZON-DE VEGA. HHI has closely worked with the Philippine Department of National Defense since Memorandum of Understanding regarding the implementation of the Corvette Acquisition Project (CAP) signed between HHI and DND since 2019. HHI was selected as a preferred bidder in October 2021.

In particular, the Corvette is a multi-purpose surface combatant with its displacement of 3,200 ton, length of 116m and breadth of 14.8m. Maximum speed is 25 knots and cruising speed is 15 knot with range of 4,500nm. The Corvette have sixteen cell of vertical launching system, eight anti-ship missile launchers, 35mm close-in weapon system, a 76mm main gun, Two three-tube torpedo launchers and Active Electronically Scanned Array (AESA) radar. By reflecting the experience of building the frigates recently delivered to the Philippines to the construction of this corvette, HHI is planning to maintain trust in quality and performance of the combatants.

Mr. Sanghoon Nam of COO of Naval and Special Ship business unit of HHI said: “I feel proud of the Republic of the Philippines and the Republic of Korea Defense industry cooperation getting stronger day by day, and HHI will continue to cooperate as a reliable partner in the Armed Forces of the Philippine Modernization program.”

Since constructing and delivering the first Korean-built frigate ROKS Ulsan in 1980, HHI has solidified its position as a leading naval shipbuilder in Korea by delivering a variety of naval ships including Aegis destroyers, multipurpose frigates, submarines, and patrol/salvage ships.

Defense Secretary Delfin Lorenzana and HHI representative Ka Sam Hyun signed the deal in a virtual ceremony which was also attended by Minister Kang Eun-ho, head of South Korea's Defense Acquisition Program Administration, and HHI president and chief executive officer Chung Ki-Sun. Other ranking DND, HHI, and officials of the Armed Forces of the Philippines (AFP), including chief-of-staff, Gen. Andres Centino and Navy chief Vice Admiral Adeluis Bordado also witnessed the event.

Lorenzana, in his speech, said they are very pleased that they are able to meet their target of having the PN Corvette Lot 1 Acquisition Project contract signed before the end of 2021 despite the delays caused by coronavirus disease 2019 (Covid-19) pandemic. "We are finally signing the contract, the last phase of the procurement process. For a total approved budget of PHP28 billion, this project will give the PN two modern corvettes that are capable of anti-ship, anti-submarine, and anti-air warfare missions," he added.

Lorenzana said acquiring the two corvettes from HHI, where the two Jose Rizal-class guided-missile frigates, will ensure commonality and interoperability. The two ships will also serve as backstops for the two frigates now in commission with the PN. "With a common shipbuilder for all our naval platforms, we expect ease of maintenance and repairs," the DND chief added.

Lorenzana also said he is commending HHI for being an active and reliable partner in the modernization program of the PN. "Like the two frigates which were built in record time, we expect this acquisition project will likewise run smoothly," he added.

The Special Allotment Release Order (SARO) for the 15 percent advance payment for the PN's Corvette Acquisition Program (CAP) was released by the Department of Budget and Management last December 10. The SARO worth PHP3.75 billion is intended to "cover the funding requirements for the 15 percent advance payment for the CAP of the PN under the Revised Armed Forces of the Philippines Modernization Program."

"They are smaller than the (two Jose Rizal-class frigates) but will also be sufficiently armed," Lorenzana said when asked for a description of the ships. Naval News commented that the two in-service BRP Jose Rizal-class frigates are based on the “HDF 2600” Frigate design (107m, 2600t) by HHI while the new corvettes are based on the larger and heavier “HDC 3100” design (115m, 3100t).




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