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POSITIVE BREAKING

PHILIPPINES APPROVES $374 MILLION CONTRACT FOR FIRST BRAHMOS MISSILE EXPORT.

by Juhi Tripathi

Read Time: 1 minute


Highlights:

  • Philippines has accepted $374.96 million contract with India.
  • Delfin Lorenzana, the Philippines' Secretary of National Defense, has signed the 'Notice of Award' for the acquisition.
  • Indonesia and Thailand are in advanced stages of negotiations, according to defence officials.

What is in the news?

Philippines has accepted $374.96 million contract with India for the procurement of a shore-based anti-ship variant of the BrahMos supersonic cruise missile system, while conversations with a few other South East Asian countries are underway.

Delfin Lorenzana, the Philippines' Secretary of National Defense, has signed the 'Notice of Award' for the acquisition, with the contract expected to be inked soon.

What exactly was the source of the recent dispute between China and the Philippines?

In November 2021, Chinese coast guard ships intercepted two Philippine supply vessels and fired water cannons at them.
The ship was on its way to a contested shoal in the South China Sea that had been occupied by Filipino marines. Following this, the Philippine government issued a warning, stating that its warships are protected under the Mutual Defense Treaty between the Philippines and the United States.

Defense Preparedness in the Philippines

India and the Philippines inked a significant enabling agreement in March 2021, paving the way for government-to-government defence equipment deals, including the BrahMos.
The Philippines' budget department issued two "special allotment release orders (SARO)" in December 2021, worth 1.3 billion and 1.535 billion. SARO enables the Philippine Department of National Defense to complete military hardware contracts.

India-Philippines BrahMos deal- Background

For the past few years, India and the Philippines had been negotiating for BrahMos. It did, however, strike a snag in December 2020. The Philippines blamed budgetary constraints as a result of the Covid-19 epidemic. This agreement is part of a defence accord between the two countries that was inked in March 2021.

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