China vessel procurement talks to begin 'this week'
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China vessel procurement talks to begin 'this week'

Seoul: Talks between China and the Royal Thai Navy on the procurement of either two offshore patrol vessels (OPVs) or a frigate under the RTN's updated submarine procurement plan with Beijing will begin this week, according to Defence Minister Sutin Klungsang.

Previously, the Royal Thai Navy had sought to acquire a Chinese-made engine for a submarine, but the plan was scrapped. The navy is looking to either acquire OPVs or a frigate from Beijing.

A preliminary deal was reached during Mr Sutin's visit to China on Tuesday.

The original agreement, signed in 2017, approved the procurement of Chinese S26T Yuan-class submarines.

The navy had planned to fit the vessel with a German-made diesel engine. However, Germany later made it clear that it forbids the use of such an engine in Chinese military hardware.

Consequently, Beijing proposed a Chinese-made engine as an alternative, but it did not materialise.

A S26T Yuan-class submarine, which was already paid for, was originally due to be delivered to Thailand last September, but the pandemic postponed its delivery until next month.

At the end of last week's meeting in China, both sides agreed to do more research and prepare to discuss in more detail the updated agreement to either acquire OPVs or a frigate from Beijing, Mr Sutin said yesterday.

China would not return to Thailand the more-than 7 billion baht already paid under the submarine procurement plan and offered the latter either two OPVs or a frigate, which will likely add 5 to 6 billion baht in cost, he said.

Paying the additional amount in this new deal would be better than losing 7 billion baht for nothing, he said.

The exact prices and models of the frigate and OPVs will be discussed in the coming talks, he said.

Thailand had initially planned to purchase two submarines from China with a total budget of 22 billion baht.

The change had raised concerns at the China Shipbuilding & Offshore International Co, which was reportedly halfway finished with construction of the first submarine.

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