Military Eyes P70-billion in Acquisitions Over Eight Years

27 Januari 2012

PT PAL offers Strategic Sea Lift Vessel for Philippines Navy (photo : Audrey)

The government is looking to roll out P70 billion-worth of projects over the next eight years for both the military and defense department, Defense Secretary Voltaire Gazmin revealed on Friday.

Included in these projects are planned acquisitions of military equipment such as fighter jets, long-range patrol aircraft and multi-role vessels.

Gazmin, speaking to reporters after the launch of the Defense Acquisitions System Assessment at Camp Aguinaldo, said also included are "big ticket" items such as radars and other major improvements in the military.

The acquisitions will be carried out until the year 2020. Gazmin also said the programs that will benefit from the spending will impact on both internal security matters and territorial defense needs of the country.

Gazmin said they will deploy teams to various countries starting Saturday to scout for possible equipment. "Take ships: From Europe, from the US, from Asia - We'll take a look and evaluate which is best and affordable for us, and we'll prioritize that, not necessarily those made in America," he said in Filipino.

Singapore has the Largest Defense Expenditure in South East Asia

20 Januari 2012

In 2008, the country had the world's fourth-largest per capita defense expenditure, behind only Israel, the US and Oman (image : ASDNews)

Singapore has the largest defense expenditure in South East Asia, and, in 2008, the country had the world’s fourth-largest per capita defense expenditure, behind only Israel, the US and Oman. The country’s defense expenditure is high due to the small size of the country’s armed forces and consequent ever-present requirement to upgrade the country’s defense equipment and procure advanced technology in order to compensate for the country’s lack of manpower (reference figure).

Singapore has the largest defense expenditure in the South East Asian region, and the country’s defense spending is expected to increase substantially by 2016. The country’s defense expenditure is primarily driven by the threat of terrorist organizations such as Jemaah Islamiah, and the country’s focus on the protection of important trade routes, such as the Strait of Singapore and the Strait of Malacca, from the threat of piracy. Singapore’s army is relatively small, resulting in the country using technology as a force multiplier, another factor which increases its defense expenditure. The country’s small size also renders it unable to provide adequate training facilities for its armed forces personnel. As such, the country relocates army training facilities to foreign countries, a decision that creates the need to purchase training stations and detachments overseas.

From 2011 to 2016, (the forecast period), Singapore is expected to invest in advanced technology for its armed forces, including purchases in areas such as such as stealth technology, unmanned technology and precision guided systems. Homeland security expenditure is also expected to increase the demand for CCTV, advanced electronic systems and biometric checking.

As Singapore is investing in advanced technology for its armed forces, it requires technology transfer agreements for all defense procurements in order to ensure future repair and maintenance and to enable the customization of equipment in accordance with the country’s needs. Additionally, Singapore’s FDI (Foreign Direct Investment) policy allows foreign defense companies to establish a fully-owned subsidiary in the country and, in order to further encourage investment, favorable tax laws also exist for foreign companies.

Singapore procures the majority of its defense equipment from foreign companies, with its defense imports driven by the country’s policy of utilizing technology to improve the efficiency of its armed forces. Some of Singapore’s major defense imports include arms, ships, missile systems and armored vehicles. Historically, the largest supplier of arms to Singapore was the US; however, from 2005 to 2010 (the review period), countries such as France and Germany have made substantial inroads into the country’s defense industry.

The Singaporean Government prefers technology transfer agreements for defense equipment acquisitions, and, as a result, this is the most common route for original equipment manufacturers (OEMs) to enter the domestic defense industry. In order to procure spare parts and other common equipment, the government also has an online portal, the Ministry of Defense Internet Procurement System (MIPS), through which registered suppliers are issued with a smart card, and only such companies are allowed to enter the bidding process for defense equipment. Defense suppliers obtain a smart card through registration with the defense ministry. Additionally, Singapore has devised an innovative procurement method through lease-to-own arrangements, a policy that substantially reduces initial capital investment, gives Singapore early access to advanced defense equipment and reduces Foreign Military Sales (FMS) commission. Foreign OEMs can therefore enter Singapore’s defense industry by offering equipment through lease-to-own arrangements.

Singapore is a relatively small country, with a total land mass of 710 square kilometers. The size of the country limits the land available for the establishment of manufacturing facilities, a factor which acts as a barrier for foreign companies considering investing in Singapore. The country’s declining birth rate, small population and resultant labor shortage also act as barriers to entry. The country’s acute land shortage is reflected by the fact that the Singaporean Government trains military personnel at foreign facilities.

Air Force Defends B10bn Budget Call

10 Desember 2011

RTAF JAS-39C Gripen (photo : Scramble)

The air force is defending its request to the government for 10 billion baht for post-flood rehabilitation work.

Air force chief Itthaporn Subhawong said the flood caused vast damage to expensive facilities and high-technology communication systems and armaments.

Cutting the budget would compromise the air force's ability to do its job.

Prime Minister Yingluck Shinawatra has questioned why the air force needs so much and asked for more detail, Defence Minister Yutthasak Sasiprapa said.

The prime minister, who visited the Defence Ministry yesterday, said the air force should prioritise spending and break it down into more detailed figures.

ACM Itthaporn said the air force asked for 10,563 million baht. He said the damage was assessed by a government-appointed committee.

"The budget we proposed truly reflects the amount of damage the air force incurred," he said.

Some equipment that was not totally ruined would be fixed, not replaced.

"We understand flood recovery in the country will be expensive. But the air force is one of the country's main defence systems.

"If rehabilitation is insufficient, we won't be able to function with the same level of capability as before," he said. The faster the money is disbursed, the sooner the force will get back on its feet.

The source said the air force may still consider trimming the funding request by up to 1.3 billion baht. It would carry out as much repair work as possible rather than acquiring new equipment.

Ms Yingluck plans to visit the air force again on Wednesday, when she will also visit the army. She will drop in on the navy the next day. "We must work together and treat each other with honour," she said. Gen Yutthasak said Ms Yingluck plans to visit the Defence Ministry regularly and have lunch with the armed forces leaders every two months as part of a policy of forging closer ties with the military.

(Bangkok Post)

Mindef to Spend $29.6 Billion on Equipment

08 Desember 2011

Singapore needs long range patrol aircraft (photo : pprune)

Singapore's Ministry of Defence is likely to spend US$23 billion (S$29.6 billion) on purchases of patrol aircraft, helicopters and other military equipment by 2015, according to a new report by IHS Jane's.

Mr Nicholas de Larrinaga, emerging markets analyst at IHS Jane's, said that Singapore's defence budget was seen rising by more than 50 per cent between 2010 and 2015 to more than US$14 billion.

Singapore allocated US$9.39 billion for defence in its budget for the fiscal year beginning April 2011, a rise of 5.4 per cent from 2010/11.

IHS Jane's said Singapore was an attractive choice for Western defence firms because of its relative transparency and its commitment to open-market acquisitions.

Vietnam Announces a 2012 Defence Budget of VND70 trillion (3.3 billion USD)

23 November 2011

Vietnam will strengthen its naval capability (photo : ttvnol)

30 bln USD set aside for construction, socio-economic tasks

The Government will earmark almost 634 trillion VND (30 billion USD) of the 2012 State budget for activities such as construction, debt payment and other socio-economic and national defence tasks.

More than 80 percent of the country's National Assembly (NA) deputies reached consensus on the final allocation and its breakdown at the ongoing second session of the 13th tenure's meeting in Hanoi on Nov. 14.

The bulk of the sum, over 526 trillion VND (25 billion USD), would be spent on development investments including basic construction (4.5 billion USD), trade, tourism and investment promotions. The allotment would also be allocated to funds for preferential loans for the disadvantaged and labour exports.

The programme on East Sea, island and maritime police, and key oil and gas projects will receive 2.9 trillion VND (138 million USD) and 3.5 trillion VND (166 million USD) respectively from the capital construction development category.

The Government will also spend 100 trillion VND (4.76 billion USD) to pay back debts and 98.8 trillion VND in aid offerings.

National defence was allocated 70 trillion VND (3.3 billion USD), with half the sum (35 trillion VND) going to security.

Salary reform activities will receive 43.3 trillion VND (2 billion USD).

The breakdown for each sector, ministry, central-level agency and individual provinces and cities was also included in the allocation plan.

The NA agreed with the Government's proposal to add 3 percent to this year's budget for the 50 localities that are eligible to receive State funding.

With the aim of spurring tourism, law-makers also agreed to offer 820 billion VND (39 million USD) in aid to 55 provinces to build tourism infrastructure. Specific allocation plans will be determined after the Government reviews the urgency and suitable amount for each locality.

The legislature, however, did not agree with suggestions to expand the allocation scale of the State budget beyond the current eligible localities. The NA argued that haphazard investment did not go with the Government's latest policy to restructure the economy, which required focused and effective investment.

The focus of the investment should be on agriculture, rural development and regions with large areas of land suitable for rice cultivation. These regions, according to the NA, had received limited funding from other economic sectors.

Flood Relief : Thailand Plans to Cut the Defense Budget in 2012

12 November 2011

The reduced budget will affect plans to maintain and buy military equipment, and the military may not be able to operate to its full capacity. (photo : kwek)

House in uproar over relief supplies

Alleged foul play in the procurement of flood relief bags continued to take centre stage in the budget debate that concluded in parliament yesterday.

Democrat Party MP for Samut Songkhram Rangsima Rodrasamee produced a bag of necessities that the government's Flood Relief Operations Command (Froc) had commissioned.

She claimed the Froc bought a five-kilogramme bag of rice of a normal grade for 195 baht when the market price was 85 baht.

Miss Rangsima said medicines in a packet from the Health Department should be free but the Froc claimed to have bought them.

Canned fish, canned vegetables and instant noodles should have been cheaper than their Froc-recorded prices if they were procured wholesale, she said.

She also alleged a woman identified only as Kratae, who was a secretary to a government MP, had tampered with the bills of rice procured for flood victims by raising the prices.

She said an exorbitant price was marked for 23,500 bags of rice delivered at Nonthaburi's Suankularb Wittayalai School, which is an emergency shelter.

Democrat list MP Boonyod Sukthinthai said mobile toilets were also overpriced.

Justice Minister Pracha Promnok, who is also the Froc's director, said relief bags were closely controlled and monitored. A report unveiled by a Froc inquiry panel led by Yanyong Puangrat, permanent secretary for commerce, said no officials had been found to be involved in the allegations of overpriced relief bags.

The Prime Minister's Office and the Department of Disaster Prevention and Mitigation, not the Froc, were responsible for buying relief bags priced at 300 baht, 500 baht and 800 baht, he said.

Pol Gen Pracha said distribution was considered based on the bag's content, cost and destination.
Places flooded for longer periods were given 800-baht bags, while recently flooded places were given smaller 300 baht bags.

"Before approval, all prices had been checked by me personally," he said.

Meanwhile, a 10% cut in the Defence Ministry's budget could compromise the military's efficiency, army chief Prayuth Chan-ocha said.

"We have no idea what to do. This is necessary. The nation is facing a disaster," Gen Prayuth said.
The money from the cut will be used for flood assistance.

For the 2012 fiscal year, the Defence Ministry has asked for 81.7 billion baht for the army, 32.9 billion baht for the navy, 32.1 billion baht for the air force, 13.2 billion baht for the Royal Thai Armed Forces Headquarters and 5.9 billion baht for the Office of the Permanent Secretary for Defence.

However, the requested budget for each agency is subject to the 10% deduction.

The reduced budget will affect plans to maintain and buy military equipment, Gen Prayuth said. The military may not be able to operate to its full capacity.

Military operations in the deep South face a budget cut of about 3 billion baht.

President Aquino Orders Release of P10 Billion for AFP Modernization Program

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Aquino Directs Fund for More Cutter Sea Vessel & Helicopters

08 September 2011

BRP Gregorio del Pilar (photo : ofwtoday)

Aquino orders release of P4.95 billion for AFP territorial defense

MANILA -- President Benigno Aquino III has directed the release of P4.95 billion to enhance the Armed Forces of the Philippines’ (AFP) capability to secure the territory of the Philippines.

Budget Secretary Florencio Abad said the fund will be used for the necessary capability requirements of AFP in its territorial defense operations, including providing a strong security perimeter for the Malampaya Natural Gas and Power Project.

“We are ensuring that each and every peso spent by the AFP will directly result in better equipment and other operational support for our men-and-women in uniform,” he said.

The amount is divided between the capability requirements of the Philippine Navy and Philippine Air Force.

Of the P4.95 billion, P2.65 billion will fund base support and logistic system, coast watch requirements; and the acquisition of a high-endurance cutter sea vessel and three helicopters of the Philippine Navy.

Meanwhile, the Air Force will be using P2.30 billion to purchase three helicopters and develop a base-hangar.

The total amount of P4.95 billion is charged against the Special Account in the General Fund (Fund 151) being maintained by the Department of Energy for Malampaya Revenues.

Abad said the use of the amount released to the AFP should be in compliance with budgeting, accounting and auditing rules and regulations to curb discretion on the management and spending procedures and allocation.

Pursuant to Section 97 of the General Appropriations Act of 2011, the Chief of Staff was instructed to ensure that transparency and accountability provisions are complied with and that status of procurements and other financial operations are posted on the AFP official websites and those of the major services.

In April this year, P423 million was released to the AFP-General Headquarters for the acquisition of vessel US Coast Guard Cutter Hamilton that will be used to secure the Malampaya project and other Philippine claimed areas in the West Philippine Sea particularly the Reed Bank and Kalayaan Island group.

Australia Approves Defence Projects Worth AUD 3 billion

31 Agustus 2011

Standart Missile on Adelaide class FFG (photo : Trimarshall)

Defence capability projects approved

The Minister for Defence, Stephen Smith, and Minister for Defence Materiel, Jason Clare today announced that the Government has approved four major Defence capability projects.

The projects are:

The acquisition of over 950 new four wheel drive vehicles as well as trailers and associated equipment for training purposes (combined first and second pass approval for the acquisition of Light and Lightweight Tactical Training Vehicles under Land 121 Phase 5A);

The upgrade of Navy’s current long range Standard Missile-2 (SM2) air defence missiles for future use by the Air Warfare Destroyers (SEA 4000 Phase 3.2 combined first and second pass approval);

Funding for a collaborative international study into the upgrade of the air defence Evolved Sea Sparrow Missile fitted to the ANZAC Class frigates and Air Warfare Destroyers (SEA 1352 Phase 1A combined first and second pass approval); and

An Enhanced Military Satellite Capability for the Australian Defence Force (ADF), including transportable land satellite communications terminals and upgrades for satellite communications on Navy platforms (Joint Project 2008 Phase 5B first pass approval).

These approvals are estimated to involve expenditure of around $550 million. When complete, the projects are estimated to involve a commitment toAustralia’s national security of expenditure of around $3 billion.

New Training Vehicles (Project Land 121 Phase 5A)

The Government has approved the acquisition of over 950 new ‘G-Wagon’ four wheel drive vehicles from Mercedes Benz Australia Pacific Pty Ltd, together with around 200 modules and 830 trailers.

The modules will be manufactured and integrated onto the vehicles by G. H. Varley Pty Ltd in NSW and the trailers will be sourced from Queensland-based Haulmark Trailers (Australia).

This approval is subject to successful negotiations with the respective companies.

This project will provide the Australian Army with a fleet of tactical vehicles and an enhanced training capability to prepare for operations in protected vehicles.

The approved value is around $425 million. The Australian industry component is worth more than $100 million.

Upgrade of the Standard Missile-2 (SEA 4000 Phase 3.2)

The Australian Defence Force’s inventory of SM2 missiles carried by the Adelaide Class frigates will be both upgraded and converted for use by the Air Warfare Destroyers.

The conversion of the missiles will allow them to be used in the Air Warfare Destroyers and provide an enhanced anti-aircraft and anti-ship missile defence capability.

The SEA 4000 Phase 3.2 project is valued at around $100 million and will be acquired under Foreign Military Sales (FMS) arrangements with theUnited States.

Evolved Sea Sparrow Missile Upgrade (SEA 1352 Phase 1A)

The Government has given combined first and second pass approval for a contribution to the international risk reduction study for the Evolved Sea Sparrow Missile (ESSM).

The ESSM is currently fitted to the ANZAC Class frigates and will be fitted to the Air Warfare Destroyers. This project will upgrade the ESSM to ensure these ships can defend against aircraft and anti-ship missile threats.

This approval involves Australia contributing approximately $20 million to the North Atlantic Treaty Organisation (NATO) Sea Sparrow Project Office to conduct the study to develop an upgraded ESSM.

The total cost of Project SEA 1352 Phase 1 is cost capped between $1 billion and $2 billion in the Public Defence Capability Plan.

Enhanced Military Satellite Capability (Joint Project 2008 Phase 5B)

The Government agreed to first pass approval for Joint Project 2008 Phase 5B – Enhanced Military Satellite Capability.

This project will deliver a comprehensive wideband satellite communications capability for the Australian Defence Force (ADF) and will take advantage of Australia’s investment in the US Wideband Global Satellite Communications system.

Phase 5B will include the delivery of transportable land terminals to equip ADF elements, upgrades for the satellite communications fit on Royal Australian Navy platforms and the establishment of a satellite communications network management system.

Funding of $12 million has been approved for first pass to second pass work. This work includes project development and risk mitigation studies including in relation to the potential upgrade of the Geraldton ground station and a new ground station facility in Eastern Australia.

The total cost of Joint Project 2008 Phase 5B is cost capped between $300 million and $500 million in the Public Defence Capability Plan.

House Leader Pushes Extension of 15-Year AFP Modernization Program

09 Agustus 2011


Philippine Marine Corps with V300 + cannon (photo : Timawa)



MANILA — A ranking member of the House of Representatives has asked Congress to fast track the approval of a bill providing for another 15-year modernization program for the Armed Forces of the Philippines (AFP) to upgrade the fighting capability of the soldiers in the field.


Muntinlupa City Rep. Rodolfo Biazon, chairman of the House committee on national defense and security, said there is a need to immediately approve House Bill 4949 seeking to amend Republic Act 7898, otherwise known as the AFP Modernization Act, as the current program will expire in December this year.


"The modernization program should focus on internal security to be able to address some critical areas in the country," he said.


Biazon said the proposed P428 billion for the first five years of the modernization program as provided under HB 4949, which he authored, will be utilized for the procurement of new military hardware.


Aside from firearms and ammunition, the AFP needs more helicopters which could be used for transporting arms and medical supplies and picking up the injured soldiers and ferry them to and from hospitals.


Biazon said Congress can use the Malampaya earnings estimated at P103 billion for the modernization plan.


"A part of that amount could be earmarked for the procurement of more helicopters for field operations," he said.


Data shows that in 2002, the AFP has a strength of 106,000 soldiers, with reserves of 131,000 men.


The Army, with 73,000 personnel, has eight infantry divisions and five engineer battalions. Equipment included 40 Scorpion tanks.


The Navy has a total of 24,000 personnel, including 7,500 Marines, with one frigate and 58 patrol and coastal combatants.


The Philippine Air Force (PAF) has the strength of 16,000, with 49 combat aircraft and 67 armed helicopters.


In previous years, the PAF was able to purchase new SF-260 trainer planes and night attack helicopters. It was also set to acquire eight primary trainer aircraft, 10 additional Huey UH-1H utility helicopters, eight brand new combat utility helicopters, eight new attack helicopters, two light lift aircrafts, and 12 trainer helicopters.


"As former AFP chief, I would know and would be able to look more closely at the way the AFP modernization plan would be more apt and beneficial, not only to the Philippine military but to the government and people," said Biazon.


"There is a need to recommend an amount that will give the AFP modernization a more realistic modernization program and effectively respond to the real needs of the country’s military arm," he said. (PNA)




The Defence Ministry Received an Additional RM493.3 Million Allocations This Year

02 Agustus 2011

Malaysia's Scorpene submarine (photo : Militaryphotos)

Mindef says RM 493.3m additional budget necessary to ‘maintain’ Scorpene subs

The Defence Ministry received an additional RM493.3 million allocations this year, and said today the amount was needed to maintain the country’s two Scorpene submarines.

The additional amount raises the ministry’s total budget to whopping total of RM11 billion.

“The main purpose is to maintain our Scorpene submarines as that expense was not included in the budget,” The Star quoted Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi (picture) as saying.

The purchase of Malaysia’s RM7 billion Scorpene submarines has been a subject of wide controversy, after authorities deported a French lawyer who has been pursuing judicial investigations into the matter in the French courts, the day after he spoke on the issue in Penang.

Pakatan Rakyat (PR) MPs have accused the Najib administration of wanting to keep the facts hidden in the purchase of the submarines from French defence firm DCNS and up to RM16 billion in defence deals over the past three years.

The purchase of two submarines from French defence company DCNS in 2002 was made when Datuk Seri Najib Razak was still defence minister and a company run by Abdul Razak Baginda, said to be a close aide of the then-deputy prime minister, was reported to have received commissions of over RM500 million from the deal.

Human rights groups and opposition parties here also linked the episode to the 2006 murder of Mongolian Altantuya Shaariibuu.

(Malaysia Today)

P32B for AFP Modernization Program Continues to Flow this Year

12 Juli 2011

PZL Sokol W3 helicopter (photo : Jetphotos)

CALBAYOG CITY – AFP Chief of Staff, General Eduardo SL Oban Jr. disclosed that the government has shifted its focus to internal security operations in order to improve existing capabilities in terms of command, control and communication and that is why there are releases of funds in the amount of P32 Billion.

“We have leveled up the capability of the ground troops in so far as internal security is concerned and that is why we have to fill in that gap which is being mandated in the 2009-2010-2011 projects as part of the medium term plan”, he clarified.

Oban said that there is transition to territorial defense most particularly in the Philippine Navy (PN) by procuring new equipment for maritime security (i.e. strategic ceiling & logistics vessels, coast watch system radars installed in the ground to detect and monitor the movements of floating assets in the area) which is essential for an effective surveillance system to focus the scarce resources in identified areas.

For the Philippine Air Force, the first batch of 4 brand new combat utility helicopters will be delivered in November and the remaining 4 is scheduled next year of same month, Oban said.

He added that the final batch who underwent Basic Aircraft Training has just concluded.

The Philippine Army on the other hand will soon have a night fighting system within the year, he said.

What has been enumerated by Gen. Oban was part of the 11 deliverables taken from 2009-2010 programs.

When Congress approved Joint Resolution No. 28 on December 1996 in which both the senate and the house gave their blessings to Republic Act 7898 or the AFP Modernization Act, it aims to develop the capabilities of the Armed Forces of the Philippines to a level where it can effectively and fully perform its constitutional mandate to uphold the sovereignty, and protect and preserve the patrimony of the Republic of the Philippines.

The law envisioned a professionalized armed force, as well as “the acquisition and upgrading of appropriate technology and equipment” to bring the AFP into the 21st century.

Overall, the modernization program has different components like force restructuring and organizational development; capability, material and technology development; bases/support system development; human resource development; and doctrines development consistent with the national defense objectives and strategic priorities.

Gen. Oban clarified that the AFPMP changed its priorities particularly in 1997 when the country was affected by Asian financial crisis. The program was no longer realistic as an implementation tool, so the government has to modify its approach in order to combat the increase of insurgents in the area.

At present, the AFP particularly the Philippine Army is intensifying its campaign on internal peace and security plan “Bayanihan”.

In his visit to the 8th Infantry Division, he acknowledged the concept used by MGen. Mario F Chan especially when its accomplishments was manifested in the 2011 first semester cited by OG3 (Operations) as best performing division in the country, with 36 encounters, 46 firearms recovered, 22 enemies neutralized, 2 brigades in top 5 and 2 battalions in top 10.

“Sa pag-iikot ko sa magkaibang division with the Secretary of National Defense, wala kaming nakitang magkaparehong campaign plan. In a unified command, kanya-kanyang diskarte yan, Oban said.

He added that the Internal Peace and Security Plan (IPSP) Bayanihan is universal, applicable and its approach depends on the commander’s creativity and strategy.

(SamarNews)

Australia Plots Biggest Postwar Military Sale

30 Juni 2011

Leopard AS1 MBT of the Australian Armed Forces (photo : Redbubble)


SYDNEY - Australia said June 29 that it would undertake its biggest disposal of military equipment since World War II to fund a major upgrade, with combat aircraft, helicopters and ships all up for grabs.


Over the next 15 years, the Australian Defence Force will replace or upgrade up to 85 percent of its equipment, said Minister for Defence Materiel Jason Clare.


This means the force will dispose of up to 24 ships, 70 combat aircraft, 110 other aircraft, 120 helicopters and 600 armored vehicles in the next decade. The government wants to use the revenue generated to fund new purchases.


Clare said Britain has generated 650 million pounds ($1 billion) since 1997 by disposing of its unwanted military assets, but Australia has spent about $20 million Australian dollars ($21.2 million) offloading similar equipment in that time.


"That's why I am reforming Australia's system of military disposals - to reduce costs, generate potential revenue and provide opportunities for defense industry involvement," he said.


As it plans to spend billions on new submarines, naval helicopters and F-35 stealth fighter jets over the next 20 years, Australia also is positioning for bulk sell-offs, with the first offer of up to 24 ships over the next decade.


Companies can bid for all ships, a class of ships or a single ship, Clare said.
"By disposing of this equipment in bulk, it will increase the amount of revenue Defence can raise and reinvest in new equipment," Clare said in a statement.
"It also provides the scale which gives real opportunities for business," he added.


Clare said the government would attempt to help preserve important historic pieces of military equipment.


PAF to Receive P14 Billion for Modernization

28 Juni 2011


Although grounded in 2002 the F-5 was officially retired in October 2005. (photo : Timawa)


MANILA, Philippines - About P14 billion of the P40 billion allotted by Malacañang to upgrade military capability will go to the Philippine Air Force, PAF chief Lt. Gen. Oscar Rabena said over the weekend.


Under its modernization plan, the PAF will acquire a long-range aircraft to patrol the country’s territorial waters.


Rabena said the P14 billion would be used to acquire radar and aircraft that would enhance the PAF’s patrol capability.


“Those in the lineup are air defense surveillance radars, surface attack aircraft – we call it close air support aircraft – combat utility helicopters... the total is P14 billion... over a period of five years,” he said.


These acquisitions would help the PAF conduct patrols and search and rescue operations and improve its ability to perform its mandate, Rabena said.


“(The acquisitions) will give us greater domain awareness, in what is happening in our territorial waters and in our territorial air space,” he said.


Last week, Budget Secretary Florencio Abad said the government is ready to implement a P40-billion military modernization project over the next five years starting 2012 to secure the country’s territory in the West Philippine Sea.


The government would allot P8 billion for the next five years for the Armed Forces modernization program to protect the country’s territory, he added.


The P8-billion annual funding for 2012 to 2016 is higher than the current modernization budget being allotted to the Armed Forces, which stands at P5 billion.


The Navy may get a huge slice of the funding, given the high costs of their equipment, said Navy chief Vice Admiral Alexander Pama.


The military is now finalizing the list of items it plans to purchase.


Meanwhile, House of Representatives appropriations committee chairman Joseph Abaya said the Armed Forces must be modernized since the military plays a key role in economic development.


Abaya is confident that the government would give attention to the military’s modernization efforts since it has taken a stance to assert its claims in the West Philippine Sea.


There was not much measure on the AFP modernization program,” he said. “Perhaps Congress and the defense department need to work closer on this.”


Speaking at the Air Power Symposium in Pasay City Friday, Abaya, a retired Navy officer, said Congress should address the gaps of the AFP modernization program, especially those related to fund allocation.


“Considering the policy implementation shortfalls, Congress would have to amend the existing law or craft a new one to effectively implement the Modernization Act,” he said.


Only P31 billion had been spent for the program after more than 16 years, he added.


The AFP Modernization Act, which took effect in 1995, has given the military the opportunity to modernize in 15 years with a total fund of P331 billion.


More than 16 years have passed since the law was enacted.


Executive Secretary Paquito Ochoa Jr. said the administration is committed to reform the Armed Forces to help it carry out its mission.


“We all want the best for our country and want to help our people weather whatever storms that come their way,” he said.


“Today we have a commander-in-chief who is committed to providing you the support you need to allow you to perform your duties to the best of your abilities,” he added.


Ochoa issued the statement at the conclusion of the Air Power Symposium at the Mall of Asia last Friday.


“The reforms are part of the 16-point agenda President Aquino envisions to re-energize and transform a demoralized but dedicated military, police and civil servants to professional and motivated bureaucracies equipped with means to perform their public service missions,” he said.


Ochoa said the PAF is the most dependent on equipment among the Armed Forces services.


“It goes without saying that our pilots are some of the best in the world, whether they fly for the country or for a commercial airline,” he said.


“But no matter how great our pilots are, their capabilities can only be exploited if they have the equipment that can do them justice,” he said.


Ochoa said Aquino is aware of the need to upgrade the equipment and capabilities of the Armed Forces, noting that one of the priority bills Malacañang is pushing is seeking to extend the life of the military modernization program until 2025.


“This is to enable the military to develop and put in place capabilities that can address threats to national security,” he said.


“Part of this proposed measure authorizes the Department of National Defense and the AFP to forge contracts of sale, lease and joint venture involving real properties owned by the Armed Forces or pursue public-private partnerships in order to raise funds for the modernization program,” he said.


As chairman of the Cabinet cluster on security, justice and peace, Ochoa said he is committed to realizing and implementing the programs and reforms laid down by the President.


He cited military reforms that have been instituted by the administration, among them the comprehensive review of the financial management systems within the AFP to ensure the full implementation of the defense program and that funds earmarked for this purpose are spent judiciously.


Other reforms include the administration’s appropriation of P4.2 billion to build 20,000 houses for low-salaried members of the AFP and Philippine National Police, and the increase in the combat duty pay and incentive pay for officers and enlisted personnel. -


Gov't to Spend P40B Over 5 Years to Upgrade AFP

20 Juni 2011

BRP Mariano Alvarez - Cyclone class (photo : Timawa)

MANILA, Philippines - The government will spend P40 billion over the next five years to upgrade the capability of the Armed Forces of the Philippines to protect maritime resources and the country’s territorial integrity, Budget Secretary Florencio Abad said Sunday.

Abad said starting next year, the government will seek an P8-billion annual budget for the AFP modernization program.

“We’ll be coming up with a list of priority acquisitions, and this has to be driven by strategy. It’s the baseline capability that the Armed Forces really needs to improve on,” AFP chief of staff General Eduardo Oban said in an interview in Calamba City during the unveiling of the tallest monument to Jose Rizal to mark the national hero’s 150th birthday.

Since 2005, Congress has allotted an annual budget of only P5 billion for the military’s modernization program.

In a separate interview, AFP Modernization Program Management Office head Brigadier General Roy Deveraturda said the upgrading the military should not be viewed as preparation for possible conflict with any country over the disputed Spratly Islands in the West Philippine Sea.

“We just want to provide sovereign presence in our territories,” Deveraturda said.
“In any conflict scenario, equipment is just one factor. But we have to be clear about this upgrade. This is not being done in preparation for any conflict. It is not like we are not going for an all out war,” he explained.

Among the priority acquisitions for the AFP are patrol helicopters with sensors, search and rescue helicopters, transport aircraft, and strategic sealift vessels, Deveraturda said.

“We are also planning to acquire a brand new Hamilton class cutter for our Coast Guard,” Deveraturda said.

Oban said the American-made Hamilton cutter, scheduled for delivery sometime in the third quarter of the year, will be initially deployed to Palawan, some 80 nautical miles from Recto Bank where recent Chinese incursions occurred.

Oban said the AFP will also expand its “coast watch system” within 200 nautical miles of the country’s exclusive economic zone in Palawan.

The military currently has coast watch stations and radars in Mindanao.

(Interaksyon)

Defense Ministry Proposes Rp 80 trillion Budget for 2012

03 Juni 2011

Indonesian Marines Corps during parade (photo : kamushukum)

The Defence Ministry is planning to request Rp 80 trillion (US$8.5 billion) in its budget for 2012, a ministry official says.

Defense Ministry Defense Planning Director General Air Vice Marshall Bonggas S. Silaen said Wednesday that the government currently allocated 0.69 percent of the Gross Domestic Product to the nation's defenses.

He said the preparedness rate for the nation's weaponry was on average below 30 percent.

"If the budget could be increased to between 1.8 percent and 2.2 percent of the GDP, the preparedness could be improved between 80 and 90 percent," Bonggas said.

He said he hoped the projected defense budget for the coming two to three years would be above 1 percent of GDP and increase in phases within the next 10 years.

(The Jakarta Post)

Some Rises, Drops in 2011-12 NZ Defense Budget

26 Mei 2011

NZ Army during Hellfire Exercise (photo : NZ Army)

WELLINGTON - New Zealand's defense budget will increase by a nominal 2 percent for the 2011-2012 fiscal year, rising to 2.9 billion NZ dollars, according to figures released by the government.
The budget, announced May 19, continues to give the largest slice of the New Zealand Defence Force's dollars to the Army, although for the second year in succession, the Army's share has shrunk - from 843 million NZ dollars last year to 832 million, including more than 380 million NZ dollars for land combat forces.

The Army's loss is arguably the Navy's gain, as their budget has increased by 20 million NZ dollars to almost 693 million NZ dollars.

The service's two Anzac-class frigates continue to be the military's most expensive assets, accounting for more than half of the Navy's budget - 408 million NZ dollars.

Also enjoying a budget boost, for the third year in a row, is the Air Force, with 670 million NZ dollars. The service's fixed-wing transport fleet of five C-130H Hercules and two Boeing 757s accounts for almost 40 percent of its budget. The Air Force's six P-3 Orions, being upgraded to P-3K2 status, account for 25 percent.

However, the NZDF's operational budget is down from 78 million to 71 million NZ dollars.

The budget for the Secret Intelligence Service has dropped slightly, and what is described as "communications security and intelligence," which likely includes the Government Communications Security Bureau with more than 300 staff, will have to manage with a significant cut in its funding from 74 NZ million dollars to 56 NZ million dollars.

(DefenseNews)

Cuts and Delays to Cost Defence $4.3bn

13 Mei 2011

Two C-130J and a C-130H Hercules fly in formation (photo : Australian DoD)

THE defence forces will give up a staggering $4.3 billion in funding over five years in a combination of cuts imposed by the government and unwelcome savings made because major projects are lagging behind schedule.

The Department of Defence has underspent its budget for new equipment over the past year by $1.1 billion, all of which will be returned to the budget, presumably to be reallocated some time in the future.

The defence budget this year is around $25 billion but does not include the 3 per cent annual increase the Howard, Rudd and Gillard governments have promised they would provide, on average, through the decade.

The budget papers reveal that Australia will spend more that $1.5 billion fighting in Afghanistan and on peacekeeping in East Timor and the Solomon Islands over the next year.

Australia’s contribution to international efforts to deny terrorists a safe haven and training ground in Afghanistan will cost $1.3 billion in 2011-12.


Australian Defence Force operations will cost $140.7 million in East Timor and $44.1 million in the Solomon Islands.

A further $32 million will be used to set up the promised Australian civilian corps rapid deployment fund to send civilian specialists in to help nations recover after wars and natural disasters.

The main Australian Defence Force involvement in Iraq, officially dubbed Operation Kruger, will finally end with the withdrawal of the soldiers who have provided security for the ambassador and diplomats and other officials at the Australian embassy in Baghdad.

That contingent of infantry mounted in armoured vehicles is being replaced by private security contractors supervised by the Department of Foreign Affairs and Trade.

Defence will return $3.1 million previously allocated to this operation to the budget.

Mark Thompson, from the Australian Strategic Policy Institute, told The Australian that would mean that to provide the promised funding in this decade would require rapid growth in defence spending from 2015-16 onwards.

Dr Thompson said Defence had been obliged to return its unspent $1.1 billion to the government because many projects were running badly behind schedule.

On some projects industry had not delivered equipment on time, mainly because of unexpected developmental problems being encountered.

In some cases, companies were also having trouble finding personnel in a tight labour market with the mining industry seeking similar engineering and technical skills.

But, as well, the government was taking much longer than anticipated to approve many projects.

Examples were a RAAF air-to-air refuelling project which was running behind schedule so that defence had handed the government back and unspent $159 million.

Delays in providing unmanned surveillance planes for the army meant $48 million was handed back, delays to the ADF's multli-role helicopter with $97 million handed back and delays to the air warfare destroyer project with $146 million handed back.

Those delays raised the question of whether defence and industry would be able to get organised enough to spend all of that money in a rush once the government got the budget back into the black and reallocated the funding for new equipment.

“If defence has not been able to spend the money it's been allocated already how will they be able to ramp it up suddenly and spend millions more?”

Dr Thomspon said the main driver of these cuts to planned Defence spending was the government being realistic about how much the department could actually spend in the coming years.

Defence capital investment has been cut by $1.3 billion and a similar amount has gone from operating expenses such as the cost of running bases, using equipment and catering.

The department has been told by the government to save another $300 million by reducing the number of additional civilian employees it planned to take on over the next three years from 1655 to 655.

Dr Thompson said the cuts and delays would be a setback for the plan outlined in the 2009 defence white paper to reequip the Australian Defence Force with potent new ships, submarines and aircraft detailed in the government's new Force 2030.

The government has increased the efficiency dividend for defence from 1 percent to 1.5 percent in 2011-12 and 2012-13 and to 1.25 percent in 2013-14 and 2014-15 and expects to save $134.9 million over the forward estimates.

That money will be reinvested by the government and will not go back to defence. As well it has cancelled the plan to buy two additional C-130J Hercules transport aircraft for the RAAF. That will save $111.3 million which will go towards the cost of buying one more massive C-17 Globemaster aircraft costing $252 million.

Another $177 million will be spent buying the big transport ship, Largs Bay, from Britain's Royal Navy top fill the embarrassing gap left by major seaworthiness problems with the RAN's transports HMAS Manoora, HMAS Kanimbla and HMAS Tobruk.


(The Australian)

AFP Given P11 Billion for Modern Equipment

18 April 2011

Multi Purpose Attack Craft of the Philippine Navy (photo : Timawa)

FORT MAGSAYSAY, Nueva Ecjia, Philippines — President Aquino said more than P11 billion would be allotted for the purchase of modern equipment for the Armed Forces of the Philippines (AFP).

Speaking at a dialogue with soldiers here yesterday, Aquino said the P11 billion would be used to acquire ships and other watercraft, helicopters for the Air Force, and rifles for the Army.

A Hamilton Class Cutter for the Navy would be coming from the US Coast Guard and that three more were coming soon, he added.

Aquino said long-range helicopters and additional watercraft would be acquired and deployed around Palawan, Sulu Sea and other areas.

“Let me make this clear, what we’re acquiring are quality patrol craft,” he said in Filipino.

“I’m particularly looking at the MPAC – multipurpose attack craft for the Navy. We’ll have more MPAC so that our Navy will have more impact.”

Aquino said he was aware how difficult it was to be a soldier due to the many sacrifices they had to take.

“These are made heavier by the controversies involving the AFP,” he said.

“This is brought about by the stealing by Gen. Carlos Garcia from AFP funds. I know you are affected by the hearings at the Senate on this issue.

“What’s painful here is that the Ombudsman is not of any help as she seems to be deliberately ignoring these kinds of irregularities.

“Instead of making (Garcia) accountable under the law, Ombudsman Merceditas Gutierrez agreed to a plea bargaining agreement wherein Garcia would only return half of what he allegedly stole and then he would be free. It’s like saying you steal a large amount so the state would be tempted to split it or (be content) with even less than half of it and you would still be thanked.”

Aquino said despite the controversies, his trust and confidence in the men and women in uniform remain.

“We will punish the abusers in your ranks so that the people’s trust in you will be restored,” he said.

Aquino said he saw it fit to visit and thank the soldiers for their services to the country and that his administration was ready to return their heroism.

Aquino assured the soldiers that his administration was working double time to address their concerns and stop corruption in government.

Aquino was in Fort Magsaysay to witness the military exercise between the Philippines and the United States.

He took the opportunity to thank the US for helping the government in its anti-corruption campaign.

He cited the US move to return the $132,000 acquired from the sale of the forfeited property of Erlinda Ligot, for being ill-gotten.

Aquino said the government’s budget did not increase much but savings had been allowing it to provide for more programs and projects.

(PhilStar)

Cabinet to Consider Approving Pricey Military Gift List

06 April 2011

RTAF CH-47 Chinook large helicopter (photo : Asiafinest)

The Army has finalised its weapons shopping list, and is expected to seek Cabinet approval for the billions of baht it will cost by next month, before the House of Representatives is dissolved ahead of a general election.

The biggest item will be 200 new medium tanks to replace, on a unitbyunit basis, vintage US M41 tanks. The specifications of the new tanks have not been officially provided, but the main condition is that they must still be commissioned by the army of the manufacturing country.

Another 82 BTR3E1 wheeled armoured personnel carriers, made in Ukraine and worth Bt4 billion, are to be handed over to the Army, and a further 121 BTR3E1s, worth Bt5 billion, will be purchased in a later phase.

There are 14 BTR3E1s currently in Thailand. Four are being disassembled and studied by the Army's Weapons Production Department, and 10 have been commissioned with a 2nd Army Division unit based in Prachin Buri.

A demonstration of the BTR3E1 APCs is planned for some time in the next few months, reportedly to deter media criticism of the vehicles.

Three Russianmade medium Mi17V5 helicopters, worth Bt994 million, are also on the list, to replace ageing USmade CH47 Chinooks, for which maintenance and obtaining spare parts has become difficult and expensive.

Three more USmade UH60M Black Hawk helicopters will also be bought at a cost of Bt2 billion.

The Royal Thai Air Force will get another six Swedishmade Gripen jet fighters, worth Bt16 billion, in the next two years. The first six, which cost Thailand Bt19 billion, arrived in February.

A number of rescue helicopters are also being sought by the RTAF, as those currently in use have proved less than fully capable of helping in disasters.

Support and radar systems currently being used with USmade F16 fighter jets will be integrated into new systems coming with the Gripen fighters, to make the different aircraft work together, the RTAF said in its purchase request. It has not yet said when the integration will take place or how much it will cost.

The weapons shopping lists of both the Army and the Air Force are being considered by the Defence Council, which is expected to approve them before submitting the combined bottom line to the Cabinet for approval. This is expected to happen by next month, so approval can be given before the coming House dissolution, to be announced by Prime Minister Abhisit Vejjajiva.

The Navy is also pushing for Cabinet endorsement of projects that require funding of more than Bt16 billion, to buy six used submarines and to upgrade two of its frigates, the Taksin and the Naresuan, at a cost of Bt7.5 billion.

Plans involve equipping the ships with antisubmarine systems, aviationdefence units and additional weapons.

(Nation Multimedia)

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