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Bangkok Post
Bangkok Post
National
GARY BOYLE

Govt backs off submarine deal

Pheu Thai MP Yuttapong Charasathien, deputy chairman of a parliamentary subcommittee which has been scrutinising the budget, outlines his stance against the purchase of the two submarines. (Photo by Apichart Jinakul)

The government has decided to temporarily back off from buying two submarines worth 22.5 billion baht from China after the Chinese government allowed the purchase to be delayed for a year, a source said.

The source at the House committee scrutinising the budget bill for the 2021 fiscal year said that after the Chinese agreed to the request for the delay, the government sent a signal to the committee's members from coalition parties to slash the budget of about 3 billion baht for the first payment.

The purchase of the first of the three submarines from China has already been finalised, using money from the 2017 budget. Delivery is expected in 2023.

The other two submarines, costing 22.5 billion baht, require payments spread over seven years.

The navy defended the procurement, insisting the subs were vital for protecting the country's maritime security and the procurement of three submarines was a done deal.

Meanwhile, according to an opinion survey by Suan Dusit Rajabhat University, or Suan Dusit Poll, the biggest causes of worry for the public are political conflicts and the planned purchase of the two submarines.

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