The Royal Thai Navy will go ahead with its plan to buy a second submarine worth 12 billion baht from China, according to a navy source.
The navy is waiting for parliament to approve the government's 2020 budget bill which is expected to be submitted for deliberation before the purchase can be made, the source said.
Under the previous coup-installed government, the cabinet agreed in principle with the navy's plan to buy three submarines from China as part of a 36-billion-baht plan.
The scheme was put before the cabinet on Oct 25, 2016, and required a budget over 11 years.
On April 18, 2017, the cabinet approved the first purchase of a Yuan Class S26T submarine worth 13.5 billion baht from China.
Payment for the first submarine is divided into seven instalments.
The navy committed to paying 700 million in the first instalment in 2017 and then two billion baht annually from 2018 until 2023.
Construction began on Sept 7 last year in China, and it is expected to be finished and delivered to the navy in the middle of 2023, the source said.
Plans to acquire submarines have gained new life since the 2014 coup after the navy struggled for years to persuade governments to purchase six second-hand submarines from Germany.
There have been no submarine purchases for more than 60 years and the navy says Thailand needs modern submarines to protect its maritime territorial interests.
They will be stationed in both the Gulf of Thailand and the Andaman Sea.
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