Phumtham hints at proceeding with Chinese submarine deal

Deputy Prime Minister and Defence Minister Phumtham Wechayachai on Tuesday strongly hinted that he would proceed with the planned procurement of a submarine from China, despite it not being equipped with a German engine.

Final Decision on Submarine Project Expected Soon

Speaking to reporters before attending the weekly Cabinet meeting, Phumtham said he would make a final decision on the long-delayed submarine project by late this month or early next month. He plans to submit his decision for the Cabinet’s final approval.

Phumtham Suggests Project Likely to Go Ahead Despite Engine Issue

Phumtham declined to explicitly confirm whether he would proceed or cancel the deal but suggested the former. He stated that if the project was cancelled solely due to the inability to acquire a German engine, Thailand would be unable to recover the 80% of costs already spent—around 7 billion baht.

Chinese Diesel Engines Seen as Reliable Alternative

Indicating his preference for moving forward, Phumtham revealed that he had investigated the Chinese-made diesel engines and found no issues with their performance in submarines.

German Engine Unavailable Due to Arms Embargo

Phumtham ruled out the possibility of obtaining a German diesel engine for the Yuan-class S26T submarine due to arms embargoes on China. The European Union has maintained an arms embargo on China since the Tiananmen Square crackdown in 1989.

Official Attempts to Procure German Engine Were Unsuccessful

The Thai Navy chief had asked his German counterpart about the possibility of Thailand purchasing the German-made MTU396 engine directly to be fitted on the Chinese submarine. However, the German Navy chief responded that it was impossible because Germany must comply with the EU embargo and similar NATO resolutions.

Phumtham also made the same enquiry with the German Defence Minister and received the same refusal.

China Unwilling to Refund Money if Deal Cancelled

Phumtham spoke with the Chinese Ambassador to Thailand, requesting assistance in negotiating with the Chinese Communist Party Politburo to recover the money already spent if the purchase were cancelled. However, the Politburo replied that the deal was handled by a private company and could not intervene.

He said, “If Thailand cancels the deal, China will not return the money because no contract breach has occurred. Furthermore, the submarine manufacturer has found a compatible engine to replace the MTU396.”

Pakistan’s Experience with Chinese Submarines Provides Reassurance

Phumtham also consulted the Pakistan Ambassador to Thailand regarding Pakistan’s submarines purchased from China. Pakistan ordered eight submarines of the same model, all equipped with the CHD620 engine. The ambassador confirmed that testing of one of these submarines showed no issues, and the submarine and engine performed well.

Two Options: Cancel or Proceed with Submarine Project

Phumtham stated he now faced two choices: to cancel or proceed with the project.

“If it is cancelled, we will lose the 80% of the total cost already paid, which is about 7 or 8 billion baht,” he said.

If he decided to proceed, he would consult the Office of the Council of State to amend the contract, as the original contract specified the submarine must be fitted with the MTU396 engine.

Progress and Investment Weigh in Favour of Proceeding

“What I have considered most is the money already spent.

Additionally, a submarine division has been established, personnel have been trained, and the submarine dock has been constructed to 80% completion,” Phumtham added.

“Regardless, I confirm this submarine issue will be resolved within my tenure—by late May or early June we will have a clear-cut solution.”

Phumtham Concerned About Public Reaction

He admitted that his biggest concern was how to explain his decision to the public and expressed hope that the issue would not be sensationalised.