24-10-2023 (BANGKOK) Move Forward Party MP Wiroj Lakkhanaadisorn, who also chairs the House committee on military affairs, has raised concerns about the Thai Navy’s decision to alter its submarine procurement deal. He has called for an explanation from the Navy chief regarding whether this change was prompted by the Chinese shipbuilder breaching the contract. Lakkhanaadisorn has pointedly asked why the Royal Thai Navy (RTN) did not terminate the contract and request a refund of the 7 billion baht already paid if the contract had indeed been violated.
Adding to the discourse, Sutin, who is closely involved in the matter, stated on Monday that he is prepared to elucidate the situation to both the committee and the House panel’s chairman in person. Sutin contends that the amendment should not be interpreted as a violation of the contract but rather as non-compliance with its terms.
In his clarification, Sutin emphasized that the deal was a government-to-government agreement and that authorities had taken strategic cooperation into account alongside the trade agreement. The initial contract, signed in 2017, involved the purchase of an S26T Yuan-class submarine, which was required to be equipped with a German-made diesel engine. However, Germany prohibits the use of such engines in Chinese military hardware.
Following this, the RTN rejected a proposal from Beijing to employ a Chinese-made engine in the submarine. Instead, they opted to purchase a frigate capable of combating submarines. This new frigate project comes at a cost of 17 billion baht, which is 1 billion baht more than the original submarine procurement.
Sutin asserts that Thailand will not suffer any losses in this altered deal. Despite the higher cost, the frigate is considered a worthwhile investment. He emphasized that the decision was made after a comprehensive evaluation of the pros and cons, including legal complexities. “We consider this to be the best way forward,” he affirmed.
