Thai cabinet approves changes to submarine contract and first phase of Gripen fighter jet purchase

The Cabinet on Tuesday (August 5) approved changes to the submarine contract for the Yuan Class S26T with China, under a Government-to-Government (G2G) agreement. The changes include switching the previously planned MTU396 German engines to CHD620 engines from China, along with an extension of the construction timeline by 1,217 days.

The Royal Thai Navy signed the contract with CSOC, China’s State Shipbuilding Corporation, in 2017 for the construction of the Yuan Class S26T submarines. However, issues arose when China was unable to supply the specified MTU396 German engines, halting progress in 2021. As of now, 64% of the project has been completed, with 10 out of 18 payment instalments already paid, totalling 7.7 billion baht. There remains 40% of the payment outstanding, amounting to 5.5 billion baht.

Additionally, the Cabinet has approved the purchase of Gripen fighter jets in the first phase of the Royal Thai Air Force’s procurement plan. The purchase includes 4 Saab JAS 39 Gripen E/F jets from Sweden, valued at 19.5 billion baht. This is part of a larger plan for 12 jets, totalling 60 billion baht, as proposed by General Nattaphon Narkphanit, Deputy Minister of Defence.

Air Chief Marshal Phanphakdee Phatthanakul, Commander of the Royal Thai Air Force, confirmed that the Cabinet has assigned him to sign the contract with SABB, along with the Swedish Defence Minister and the military procurement heads, who will attend the signing ceremony as witnesses. The ceremony is scheduled to take place on August 25 in Sweden.

"Everything is proceeding according to plan, and the Royal Thai Air Force is fully prepared with the contract," said Phanphakdee. "All actions are in line with international regulations and appropriate timelines, with no concerns regarding security."